US Policy Changes Vol.14 (Deregulation Vol.2)

Here are excerpts on deregulation from Scoring the Trump Economic Plan: Trade, Regulatory, and Energy Policy Impacts (PDF; 9/29/2016) | Peter Navarro and Wilbur Ross.

IV. Regulatory Effects on Growth
@BizRoundtable…: Nearly three-quarters of @BizRoundtable CEOs list regulations as one of the top three cost pressures facing their businesses. … Fifty-six percent believe pending regulations will negatively affect their hiring and capital spending over the next two years. And 68 percent indicate that if existing regulatory costs were reduced by 20 percent, the money saved would be invested in increased research and development. … “82 percent of @BizRoundtable members said they find the U.S. regulatory system more burdensome than those of other developed countries.”
In 2015, @FedRegister lists over 3,400 final rules issued. …@Heritage: The number and cost of federal regulations increased substantially in 2015, as regulators continued to tighten restrictions on American businesses and individuals. The addition of 43 new major rules last year increased annual regulatory costs by more than $22 billion, bringing the total annual costs of Obama Administration rules to an astonishing $100 billon-plus in just seven years.
@Heritage and @ShopFloorNAM have estimated regulatory costs to be in the range of $2 trillion annually – about 10% of our GDP. @ShopFloorNAM finds that “small manufacturers face more than three times the burden of the average US business.” According to @ceidotorg, this “hidden tax” of regulation amounts to “nearly $15,000 per US household” annually. …

The Trump Regulatory Reform Plan
We assume the Trump plan seeks to reduce the current regulatory burden by a minimum of 10% or $200 billion annually.
According to @ShopFloorNAM, “for every one worker in manufacturing, there are another four employees hired elsewhere.” In addition, “for every $1.00 spent in manufacturing, another $1.81 is added to the economy” and this is “the highest multiplier effect of any economic sector.”
… According to @TheMfgInstitute:
More than any other sector, manufacturers bear the highest share of the cost of regulatory compliance. … Manufacturers spend an estimated $192 billion annually to abide by economic, environmental and workplace safety regulations and ensure tax compliance—equivalent to an 11 percent “regulatory compliance tax.”

Scoring The Effects of Regulatory Reform
… Donald Trump’s strategy will trim a minimum of $200 billion from America’s annual regulatory burden. This is roughly one-tenth of the $2 trillion consensus estimate of that burden.
This reduction in regulatory drag would add $200 billion of pre-tax profit to businesses annually. Taxing that additional profit at Trump’s 15% rate would yield $30 billion more in annual taxes. This would leave businesses with an additional $170 billion of post-tax earnings.
Businesses typically pay out one third of increased post-tax earnings so on this $170 billion of increased post-tax earnings, $56.67 billion more would be paid in dividends and taxed at an 18% percent effective rate. This would leave $113.33 billion of investible extra cash flow, and add $10.2 billion of personal income tax revenues to the Federal treasury each year. …