The tax you didn't even know you were paying...

 We've all heard the old adage "There are only two things that are guaranteed in life; death and taxes". Hard to argue with that axiom. Taxes are endless; income, property, estate, sales, inheritance, capital gains, excise, luxury, tariffs, hotel/lodging, motor vehicle...  And more. But there is one tax not listed here that we all pay at some time, some of us more than others. Much more. It's an insidious tax for which there are no statues that codify it. But it's real, very real. That tax is time. 

Most discussions of inequality focus on wealth gaps and income. But there's an equally sinister version of inequality that doesn't pit the rich against the poor. It's the administrative state's pilfering a valuable resource from anyone trying to get ahead and improve their life. Time. 

Time inequality is less visible, harder to measure and more harmful than income inequality. Modern life and liberal market advocates have achieved a steady increase in individuals' leisure time. Work/life balance is a goal of any corporate environment these days. In the past those with fewer means labored from sunup to sundown to survive, they now enjoy more time for family, rest and improving their lives. Lassez-faire delivered this miracle; but government bureaucracies are surreptitiously taking it back. 

Navigating government systems is like a second job that doesn't pay the bills. Renewing your drivers license, that's a half day down the tubes. Applying for social security benefits? Lots of luck with that. Starting a side business? Expect to spend months navigating complex licensing requirements, completing paperwork, obtaining inane approvals, and making repeat visits. These are beyond mere annoyances, they're regressive, invisible taxes involving time, imposing the greatest burden on those with the least resources. A 2016 study by researchers at the consulting firm Management Lab revealed that bureaucratic waste - including delays and over regulation cost America 17 percent of its GDP. This number represents real hours lost, opportunities denied, and lives hindered. The well-to-do have ways around this. They can hire assistants, pay for expedited services, or simply take time off without financial strain. But for the poor, every government imposed delay comes with a tangible cost: lost wages, missed shifts, and less time with family. I didn't even mention frustration and stress.

A maze of occupational licensing laws govern over twenty percent of U.S. jobs. In many states to obtain a license for a job one must pay fees, pass tests and complete sometimes hundreds of hours of training. It's not just money being extracted, excessive amounts in many cases, but time. For example, in New Mexico to obtain a cosmetology license one must complete more than 1,600 hours of training. Requirements such as this are intended to protect incumbents who benefit from high hurdles to eliminate competition. 

To compound the problem, even after meeting the costly, time-consuming requirements, many find themselves blocked by arbitrary bureaucratic vetoes. Policies like 'certificates of need' allow government officials to decide, often without justification, that an individual's services aren't needed, regardless of that person's qualifications. Some people who are hindered by arbitrary hurdles seek help from the courts. Legal recourse can be a marathon as well, not to mention unaffordable by most. The Supreme Court case Sackett v EPA involved a family that wanted to build a modest home on their property in Idaho. The EPA claimed jurisdiction over their property and threatened absurd fines unless they obtained an expensive permit. The couple fought back, and won. But it took a full sixteen years to vindicate their rights. Is this government overreach or sheer stupidity? Both, I suppose, but a little heavy on the stupidity. 

What can be done about this? Actually, a lot. Lawmakers can repeal these ignorant, baseless licensure requirements. Government permission is not needed for jobs that pose no risk to the public. Streamlining government processes; if it takes more than 30 days, requires multiple in-person visits, or can't be completed on-line, then the process is broken. Implement response time caps, default approvals, and digital filing for everything. Regulatory audits shouldn't measure only monetary costs, they should also measure the time burden. Courts should treat bureaucratic time-wasting, particularly when it burdens or prevents people's right and ability to earn a living, as a matter of legal concern. Courts reflexively defer to regulators determination that a law is necessary, even when the law blocks a person from earning a living. If a law unnecessarily consumes people's time without a clear public benefit or need, the courts should strike it down. 

Every unnecessary delay, form and regulation is an insidious, hidden tax on our most precious, unrecoverable resource: time. And that tax is anything but equal. On an individual basis, time is a very limited resource. The time tax is real and it's time to treat it that way...


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The tax you didn't even know you were paying...

  We've all heard the old adage "There are only two things that are guaranteed in life; death and taxes". Hard to argue with t...