The Trump administration’s efforts to reduce the burden on the U.S. economy from unnecessary federal regulations have met with success, the Council of Economic Advisers (CEA) reports.
The report analyzes 20 major deregulatory actions it says will save U.S. consumers and businesses about $220 billion per year after they go into full effect. These reforms will raise real incomes by $3,100 per household per year and increase U.S. gross domestic product (GDP) by 1.0 to 2.2 percent in the next decade, the CEA estimates.
The CEA issued an interim report on “The Economic Effects of Federal Deregulation since January 2017” on June 28.
‘An Insidious, Invisible Tax’
The cost of administrative rules is a huge drag on the economy, says Edward Hudgins, research director at The Heartland Institute, which publishes Budget & Tax News.
“For decades, government regulations have been an insidious, invisible tax that by some estimates is a burden equal to that of income taxes,” Hudgins said.
Reducing economic losses from unneeded regulations will provide tangible benefits to the public, Hudgins says.
“The Trump administration’s efforts will indeed likely save American households thousands of dollars over the next decade and, for some, within the next few years.”
‘A Drop in the Bucket’
The goal of President Donald Trump’s regulatory agenda is “to reduce costly regulation, while protecting workers, public health, safety, and the environment,” the report states.
There is room for much more economic improvement by further reducing the regulatory state, says economist Devon Herrick, a policy advisor to The Heartland Institute.
“The Competitive Enterprise Institute puts the annual economic cost of federal regulations at $1.9 trillion,” Herrick said. “So, while positive, progress so far is a drop in the bucket compared to the total burden of regulations on the economy.”
Hayley Sledge ([email protected]) writes from Dayton, Ohio.
“The Economic Effects of Federal Deregulation Since January 2017: An Interim Report,” Council of Economic Advisers, June 28, 2019: https://heartland.org/publications-resources/publications/the-economic-effects-of-federal-deregulation-since-january-2017-an-interim-report