cost of state regulations on california small businesses study

Posted in the Bloomington Forum


Jefferson City, MO

#1 Aug 23, 2011
All Californians need to read this entire report, you are loosing out on loss of 3.8 million jobs which is a tenth of the State’s population.


This study finds that the total cost of regulation to the State of California­direct, indirect, and induced­is $492.994 billion, which is almost five times the State’s general fund budget, and almost a third of the State’s gross product. This cost of regulation results in an employment loss of 3.8 million jobs which is a tenth of the State’s population. In terms of labor income, the total loss to the state from the regulatory cost is $210.471 billion. Finally the indirect business taxes that would have been generated due to the output lost is $16.024 billion. These indirect business taxes lost could have helped fund many of the state’s departmental budgets.

The total cost of regulation was $134,122.48 per small business in California in 2007, labor income not created or lost was $4,359.55 per small business, indirect business taxes not generated or lost were $57,260.15 per small business, and finally roughly one job lost per small business.

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