“A sweeping new economic study released this week has confirmed what American families have felt for years: federal regulations are quietly draining household budgets—to the tune of more than $14,000 per year in hidden costs. The analysis, conducted by a coalition of market economists and regulatory scholars, estimates that the cumulative impact of federal rules—spanning energy mandates, environmental restrictions, labor requirements, health-care rules, financial compliance, and consumer-product regulations—now amounts to a “shadow tax” that rivals or exceeds what many families pay in federal income taxes,” notes Liberty Conservative News.
The study finds that the average American household pays an indirect regulatory cost of:
- $14,068 per year in higher prices, restricted supply, and inflated service costs
- Tens of thousands in lifetime lost savings
- Reduced purchasing power due to compliance-driven inflation across major sectors
These costs do not show up on pay stubs or tax bills. They are embedded in:
- Utility bills
- Grocery prices
- Car payments
- Rent and mortgage costs
- Health insurance premiums
- Everyday household goods
One economist who worked on the study put it bluntly:
“Federal regulations now function as a second income tax—collected through hidden price increases instead of the IRS.”
The $14,068 estimate is a conservative estimate that may understate the true cost of regulations. A 2024 study estimated the costs at closer to $16,000:
Federal regulations added record-breaking costs of $2.1 trillion for the average American in 2023, according to a study from the Competitive Enterprise Institute (CEI) released Tuesday.
The large sum incorporates the calculated impact of federal regulations as well as compliance costs, resulting in a “hidden tax” of $15,788 per U.S. household, CEI’s annual “Ten Thousand Commandments” report found. The Biden administration helped drive the surge in regulatory costs, completing 97 rules with costs of $100 million or more. (RELATED: Biden Admin Has Cemented $1 Trillion Worth Of Rules And Regs In 2024, Analysis Finds)
President Joe Biden’s new regulations on small businesses were also partially responsible for the increase, according to CEI.
