Category Archives: regulation

CEI’s Battered Business Bureau: The Week in Regulation


Just another week in the world of regulation:

  • It was a short work week because of the July 4 holiday, but 71 new final rules were still published, down from 101 the previous week. That’s the equivalent of a new regulation every 2 hours and 22 minutes — 24 hours a day, 7 days a week. All in all, 2,055 final rules have been published in the Federal Register this year. If this keeps up, the total tally for 2012 will be 4,001 new rules.
  • 1,102 new pages were added to the 2012 Federal Register last week, for a total of 40,184 pages. At this pace, the 2012 Federal Register will run 77,277 pages.
  • Rules are called “economically significant” if they have costs of $100 million or more in a given year. The 25 such rules published so far in 2012 have compliance costs of at least $14.5 billion. Two of the rules do not have cost estimates, and a third cost estimate does not give a total annual cost. We assume that rules lacking this basic transparency measure cost the bare minimum of $100 million per year. The true cost is almost certainly higher.
  • No economically significant rule was published last week. So far, 211 final rules that meet the broader definition of “significant” have been published in 2012.
  • So far this year, 376 final rules affect small businesses. 58 of them are significant rules.

Highlights from final rules published last week:

  • A new Navy Department rule exempts the USS Harry S. Truman from certain international regulations for preventing collisions at sea. So if you find yourself on a boat and you see the Truman, flee.
  • Sometimes, marriage is a federal matter. On July 7, Barbara Harder was married in Lake View, New York. The Coast Guard celebrated by publishing a regulation establishing a temporary safety zone in Lake Erie near where the celebratory fireworks show happened. CEI sends its best wishes to Barbara and her new spouse.
  • The Agricultural Marketing Service reduced the tax it levies on farmers who grow avocados from 37 cents per 55-pound bushel to 25 cents.
  • If you plan on fishing for Pacific cod in the Gulf of Alaska using jig gear, read this regulation.

For more data, go to TenThousandCommandments.com.

CEI Podcast for July 5, 2012: Relic of Prohibition


Have a listen here.

Prohibition ended 79 years ago, but in Washington, D.C., it is still illegal to buy liquor on Sundays. Fellow in Consumer Policy Studies Michelle Minton thinks these blue laws need to be modernized.

Regulation of the Day 223: Fred Flintstone Cars


Sebastian Trager is an engineer in Germany who loves The Flintstones. He recently built a replica of Fred Flintstone’s car that looks almost exactly like the original. The only significant nod to modernity is that instead of being foot-powered, it has a 1.3 liter engine. Regulators, ever afraid that someone, somewhere might be having fun, quickly told Trager that he may not drive his car on German roads.

One reason is that German regulations require all cars to have windshield wipers. Trager didn’t think to install them, mainly because his Flintstone-mobile doesn’t have a windshield.

Other items are more substantive. Looking at pictures of the car, it also lacks side and rearview mirrors, and seatbelts. One imagines that it also lacks airbags. It also lacks turn signals, though Trager could use hand signals to alert fellow motorists when he’s about to turn.

After all the work Trager put into his creation, hopefully he’ll find a way to get at least some use out of it. It would be a shame to see this sparkling example of German engineering go to waste.

Or maybe he should have followed movie buff Paul Harborne’s example and created a replica Ghostbusters car instead.

Regulation of the Day 222: Macaroni


According to federal regulations, you may not, in fact, stick a feather in your hat and call it macaroni.

I’m serious. 21 CFR 139, Subpart B, §139.110 defines macaroni as “the class of food each of which is prepared by drying formed units of dough made from semolina, durum flour, farina, flour, or any combination of two or more of these, with water and with or without one or more of the optional ingredients specified in paragraphs (a) (1) to (6), inclusive, of this section.”

If it doesn’t meet that definition, you can’t call it macaroni. Some other anti-feather provisions in federal macaroni policy include:

  • The shape. “Macaroni is the macaroni product the units of which are tube-shaped and more than 0.11 inch but not more than 0.27 inch in diameter.”
  • Spaghetti and Vermicelli are also considered macaroni products. Spaghetti is “tube-shaped or cord-shaped (not tubular) and more than 0.06 inch but not more than 0.11 inch in diameter,” and vermicelli is “cord-shaped (not tubular) and not more than 0.06 inch in diameter.”
  • Egg whites must make up at least 0.5 percent by weight of each noodle, but no more than 2 percent.
  • The protein content of macaroni products is capped at 13 percent.

And Yankee Doodle began to cry.

CEI’s Battered Business Bureau: The Week in Regulation


Just another week in the world of regulation:

  • 101 new final rules were published last week, up from 77 the previous week. That’s the equivalent of a new regulation every hour and 36 minutes — 24 hours a day, 7 days a week. All in all, 1,979 final rules have been published in the Federal Register this year. If this keeps up, the total tally for 2012 will be 4,002 new rules.
  • 1,388 new pages were added to the 2012 Federal Register last week, for a total of 39,082 pages. At this pace, the 2012 Federal Register will run 77,544 pages.
  • Rules are called “economically significant” if they have costs of $100 million or more in a given year. The 25 such rules published so far in 2012 have compliance costs of at least $14.5 billion. Two of the rules do not have cost estimates, and a third cost estimate does not give a total annual cost. We assume that rules lacking this basic transparency measure cost the bare minimum of $100 million per year. The true cost is almost certainly higher.
  • No economically significant rule was published last week. So far, 206 final rules that meet the broader definition of “significant” have been published in 2012.
  • So far this year, 364 final rules affect small businesses. 57 of them are significant rules.

Highlights from final rules published last week:

  • Under Coast Guard regulations, boats must meet a certain minimum size in order to help out with oil spill relief efforts.
  • The Agricultural Marketing Service allows non-organic pectin in organic food if the food producer doesn’t have access to organic pectin. Pectin is a powder made from citrus fruits.
  • If you employ child laborers, you should be aware that the federal government has amended its child labor regulations for “Occupations involving the operation of circular saws, band saws, guillotine shears, chain saws, reciprocating saws, wood chippers, and abrasive cutting discs.”
  • Want to import Dracaena plants from Costa Rica? Read this regulation first.
  • The federal tanning tax.

For more data, go to TenThousandCommandments.com.

Who Benefits from Paternalism?

One of the most neglected questions in the paternalism debate — largely unasked by both sides — is, who benefits? Harvard’s Ed Glaeser has an answer:

“Advocating soft paternalism is akin to advocating an increased role of the incumbent government as an agent of persuasion.”

-Edward L. Glaeser, “Paternalism and Psychology,” (Regulation vol. 29, no. 2, p. 38, 2006).

Paternalist policies have built-in public choice concerns that all but ensure  results very different from their intentions. Something Mayor Bloomberg and his fellow travelers should keep in mind.

CEI’s Battered Business Bureau: The Week in Regulation


Just another week in the world of regulation:

  • 77 new final rules were published last week, down from 84 the previous week. That’s the equivalent of a new regulation every 2 hours and 11 minutes — 24 hours a day, 7 days a week. All in all, 1,790 final rules have been published in the Federal Register this year. If this keeps up, the total tally for 2012 will be 3,765 new rules.
  • 1,633 new pages were added to the 2012 Federal Register last week, for a total of 37,694 pages. At this pace, the 2012 Federal Register will run 77,881 pages.
  • Rules are called “economically significant” if they have costs of $100 million or more in a given year. The 25 such rules published so far in 2012 have compliance costs of at least $14.5 billion. Two of the rules do not have cost estimates, and a third cost estimate does not give a total annual cost. We assume that rules lacking this basic transparency measure cost the bare minimum of $100 million per year. The true cost is almost certainly higher.
  • One economically significant rule was published last week. So far, 203 final rules that meet the broader definition of “significant” have been published in 2012.
  • So far this year, 340 final rules affect small businesses. 55 of them are significant rules.

Highlights from final rules published last week:

  • Last week’s economically significant regulation is intended to prevent prison rape. Some people might snicker at the topic, but rape is emphatically not a laughing matter. The price tag for this rule is $6.9 billion from 2012-2026, or an average of $486.5 million per year. With about 2.3 million people incarcerated nationwide, that’s a little over $200 per prisoner per year.
  • The 70,000-page tax code got a little longer on Monday, and again on Friday.
  • The Transportation Department is revising its program for disadvantaged airport concession workers.
  • The western snowy plover, an endangered bird, is the recipient of 24,257 acres of critical habitat and a new taxonomy, courtesy of the Fish and Wildlife Service. The former Charadrius alexandrinus nivosus is now known as Charadrius nivosus nivosus.

For more data, go to TenThousandCommandments.com.

Regulatory Humor

This New Yorker cartoon reminds of Joe Stigler’s adage that intentions do not equal results. Click the image to enlarge.

 

CEI’s Battered Business Bureau: The Week in Regulation


Just another week in the world of regulation:

  • 84 new final rules were published last week, up from 65 the previous week. That’s the equivalent of a new regulation precisely every 2 hours — 24 hours a day, 7 days a week. All in all, 1,713 final rules have been published in the Federal Register this year. If this keeps up, the total tally for 2012 will be 3,754 new rules.
  • 1,934 new pages were added to the 2012 Federal Register last week, for a total of 36061 pages. At this pace, the 2012 Federal Register will run 77,718 pages.
  • Rules are called “economically significant” if they have costs of $100 million or more in a given year. The 24 such rules published so far in 2012 have compliance costs of at least $14.5 billion. Two of the rules do not have cost estimates, and a third cost estimate does not give a total annual cost. We assume that rules lacking this basic transparency measure cost the bare minimum of $100 million per year. The true cost is almost certainly higher.
  • No economically significant rules were published last week. So far, 195 significant final rules have been published in 2012.
  • So far this year, 324 final rules affect small businesses. 54 of them are significant rules.

Highlights from final rules published last week:

For more data, updated daily, go to TenThousandCommandments.com.

An IRS Trojan Horse

I’ve written before about why a return-free tax system is a bad idea (here and here). Under a return-free system, the IRS collects information on you and fills out your 1040 for you, so all you have to do is cut a check. The conflict of interest in having your tax collector also be your tax preparer is obvious.

A new proposal from the IRS, called a real-time tax system, looks benign, if only by comparison. It’s still a bad idea. But as my colleague David Deerson and I explain in The Daily Caller, the worst aspect of real-time is that it uses very similar technology to return-free. In other words, it’s a step on the way to a return-free system:

A return-free tax system is a terrible policy that has little appeal to anybody — except the IRS itself. Progressives see it as an encroachment on privacy; conservatives consider it an assault on economic freedom. They should oppose a real-time tax system with equal vigor. Once the databases and reporting software are in place, it will be easy for the IRS to implement return-free. A better solution for increasing compliance and making it easier for taxpayers to fill out their returns is actually quite simple — simplify the tax code.

Read the whole thing here.