Love it or hate it, we’ve all gotten used to the annual ballyhoo about Tax Freedom Day, the Tax Foundation’s calculation of how long, on average, Americans have to work to pay their federal, state, and local taxes. But most of us are less familiar with Cost of Government Day, the brainchild of the Americans for Tax Reform Foundation and the Center for Fiscal Accountability, which adds another element to the mix: the cost of compliance with the regulations imposed by government authorities at all levels.

This year, national Cost of Government Day fell on August 19; that’s 231 days from the start of the year. For some states, it’s much later, though. Wisconsin and Rhode Island celebrate today; Connecticut has to wait until September 17.

The cost of government regulation of all kinds accounts for more than 18 percent of national income, according to the report. And that doesn’t include the hidden costs of negative economic effects:

“Regulations may prevent new firms from entering the market or stop existing ones from expanding. They may even force some existing firms out of business altogether. The end result is a reduction in overall output, fewer jobs, lower wages, and suppressed economic growth.”

Economists at Washington University in St. Louis estimate these costs at $1.5 trillion per year.

Are we getting our money’s worth? How would we even know? ###