Sen. Orrin Hatch, R-Utah, says the average American family pays about $4,000 in direct tax. But government regulation costs it another $4,100 by raising the cost of goods and services it buys.
"This is over 13 percent of the average household income, and is more than the tax burden. In fact, this regulatory cost can be viewed as a hidden tax that doubles the tax burden of the average American," he said Tuesday.Hatch said that during a Senate Labor and Human Resources Committee hearing on labor regulatory policy - including the paperwork and special supplies and architectural changes businesses must make to comply with federal occupation rules.
Hatch praised President Bush for calling in his State of the Union address for a review of all federal regulations and the costs they impose on businesses.
Hatch said a study by the Rochester Institute of Technology estimated that federal regulation now costs the U.S. economy "some $400 billion per year - over $100 billion is in paperwork costs alone."
He added, "Can you imagine the technologies and innovations we could unleash in this country by lowering the cost of regulation? Can you imagine the effect an additional $4,100 per household would have on job creation?"