Forbes noticed and points out in Flat Tax This: Regulations Are The Boot On Hiring's Neck
Everyone’s talking about spending and flat taxes; but for healthy recovery, the hidden tax of regulation needs flattening too.
The right has a very good point about taxes, but it really isn't the full argument. The talking heads almost daily discuss the tax rates and compare them to rates of the past with lines like, "the Clinton rates were higher and the economy flourished."
What they fail to note is the sheer mountain of regulations that have been created since Obama took office continuing and expanding on a long history of over regulating.
It isn't JUST the taxes, the taxes are a means and they are high. No one should pay more then 1/3 of their total income to the government. With the taxes comes more regulations and rules.
(I will probably edit this, it is late but I wanted to get this out there).
Update: July 10, 2011 15:34
This opinion piece on jobs costing Obama his job sums up what I meant very well:
The private sector has regained about 30 percent of the manufacturing jobs it lost in the recession -- jobs created despite regulatory policies detrimental to manufacturing's expansion.
Add the administration's health-care policies (which drive up the cost of employment by increasing medical insurance costs) and environmental policies (which drive up the price of energy, particularly in Western Pennsylvania, where coal is a major source), and you can see why the private sector is skittish about enlarging payrolls.
That means the president has not only a small-business problem, but a blue-collar-worker problem. Both are sources of independent voters so essential to winning elections.
Add, too, the Dodd-Frank bill, which Larry Lindsey, former Federal Reserve governor, says "has made it much more difficult for banks to make business loans, as more of their resources must be devoted to regulatory compliance and (the) building of capital than to granting loans."
Partnerships are the key to economic growth. The great 20th-century economist Joseph Schumpeter described entrepreneurs as "gap-fillers and input-completers," meaning they bring together everything needed to create output and jobs in one place -- basically by partnering with various groups.
It's better that entrepreneurs, not government or academia, be central to this process because they typically know how to get things done, risk their own money and face real consequences if they fail.
"While the president often talks about having 'created' jobs ... he didn't," explained Lindsey. "Such jobs that have been gained have been produced by risk-taking entrepreneurs."
All that "shovel-ready" stimulus money filled many state budgets, but not so many private-sector job openings.
The president's resume includes little that indicates he knows how to create jobs -- which may, in the end, contribute to him losing his job.
Read more: Issue could cost Obama his job - Pittsburgh Tribune-Review http://www.pittsburghlive.com/x/pittsburghtrib/opinion/columnists/zito/print_745912.html#ixzz1RjjdHezq
Updated August 16, 2011:
If the federal government's regulatory operation were a business, it would be one of the 50 biggest in the country in terms of revenues, and the third largest in terms of employees, with more people working for it than McDonald's, Ford, Disney and Boeing combined.
Under President Obama, while the economy is struggling to grow and create jobs, the federal regulatory business is booming.
Regulatory agencies have seen their combined budgets grow a healthy 16% since 2008, topping $54 billion, according to the annual "Regulator's Budget," compiled by George Washington University and Washington University in St. Louis.
That's at a time when the overall economy grew a paltry 5%.
Meanwhile, employment at these agencies has climbed 13% since Obama took office to more than 281,000, while private-sector jobs shrank by 5.6%.
The Obama administration imposed 75 new major rules in its first 26 months, costing the private sector more than $40 billion, according to a Heritage Foundation study. "No other president has imposed as high a number or cost in a comparable time period," noted the study's author, James Gattuso.
The number of pages in the Federal Register — where all new rules must be published and which serves as proxy of regulatory activity — jumped 18% in 2010.
This July, regulators imposed a total of 379 new rules that will cost more than $9.5 billion, according to an analysis by Sen. John Barrasso, R-Wyo.
And much more is on the way. The Federal Register notes that more than 4,200 regulations are in the pipeline. That doesn't count impending clean air rules from the EPA, new derivative rules, or the FCC's net neutrality rule. Nor does that include recently announced fuel economy mandates or eventual ObamaCare and Dodd-Frank regulations.