Just as Washington is revving up to impose limits on "tax inversions" on corporations seeking tax havens in other countries, along comes this study to show just how uncompetitive the United States already is.
Federal regulations imposed on America have been costing the U.S. economy more than $2 trillion every year and growing, according to a new study that sought to quantify the economic damage inflicted by Washington, D.C., politicians and bureaucrats. That drag represents well over 10 percent GDP, the report said. Especially burdened under the perpetually expanding regulatory regime are manufacturers and small businesses — two of the key sectors urgently needed to drive employment, growth, and exports amid ballooning U.S. trade and budget deficits. The most harmful and costly regulations and decrees, the report found, surround alleged “environmental” issues.
Minimum-wage laws have unintended consequences, including hurting the very people they're allegedly designed to help.
Burger King’s decision to move its headquarters to Canada using what the political class refers to as the “inversion loophole” has sparked another round of outrage from politicians, many of whom seem to believe that companies exist primarily to finance Uncle Sam. Despite claims made by Obama and other Big Government mongers that the strategic relocations show a lack of “economic patriotism,” the real cause of the accelerating corporate exodus surrounds oppressive U.S. tax laws almost unique to the United States, experts say. Individual citizens are fleeing, too. Without serious reforms, the trends are likely to accelerate.