It is our hope that 2024 brings you all the love and joy of family, faith, and commitment to making the best of every opportunity. As we face both known and unknown challenges of the coming year, it is our prayer for us all that we find the strength and courage to persevere when challenged and the wisdom to listen and truly enjoy the serenity of the moment when it is presented.

While the economic data was muted this week as the Bureau of Labor Statistics (BLS) was closed for the holidays, there were some details in Federal and State policy that will surely get your attention and impact your finances.

 

The New year rang in “the year with more regulations and higher costs”…In 2023 the Biden administration surpasses both Trump and Obama combined and created over $745 billion worth of regulations in 2023 and much of those regulations go into effect this year according to information supplied by the American Action Forum (AAF).

What does it mean – 2024 is set to cost businesses and taxpayers three quarters of a $ trillion in new regulations and millions of new hours of paperwork. Don’t worry, “new regulations that increase costs and demand more paperwork are not inflationary.”

According to AAF analyst Dan Goldbeck “Since January 1, 2023, the federal government has published $745.2 billion in total net costs (with $129.2 billion in new costs from finalized rules) and 251.3 million hours of net annual paperwork burden increases (with 60.5 million hours in coming from final rules),”

You just can’t make this up. In just 4 days, between Dec. 26 to Dec. 29, which was shortened due to Christmas Day, the administration added $45.6 billion in total costs and added 43.4 million annual paperwork burden hours, according to Goldbeck. If you could invest in the Federal Government, along with the last 50 years, 2024 would make you rich. Unfortunately, you can’t, and the government won’t solve your problems. Yet, at the cost of the taxpayer and businesses that create and hire people to produce goods and services that meet the needs of the consumer and solve their problems, costs are going up due to massive increase in regulations. 2024 is lined up to be one heck of a year for new regulations, increased costs, and more paperwork.

 

It’s not just the Federal Government…Several states are all in on more regulation and taxes.

What does it mean – As of Jan. 1, major retailers in California will be fined if they don’t sell “gender-neutral” children’s toys in their stores. I have to ask, who is going to police this and what will that cost the taxpayers of CA?

Also starting in 2024, CA will ban the sale of any gas-powered lawnmowers, leaf blowers, chainsaws, or yard care equipment. Tens of thousands of workers in CA who relied on this equipment for their business will be affected by the new rules and regulations. This will absolutely affect millions of people who use their services or supply and service the equipment. Oh, and let’s not forget to mention that the government’s own studies create more concerns over the efficacy and cost of electric powered alternatives according to The Sacramento Bee.

Small business owner and landscaper, Rafael Guzman told the Bee that big business would be the only ones to survive the new law. He went on to say that landscaping jobs with electric-powered equipment would take longer “because the machines don’t have the same potential.” This will drive up the costs for every home and business.

Not to be outdone, MI Governor Whitmer signed the clean Energy and Climate Action Package Act in November which seeks to make MI 100% carbon free by 2040. The act would require all the state’s utilities to increasingly source from green energy, like solar and wind power, or from nuclear, hydrogen, and natural gas. With out any regard to reality, Whitmer claims that Michigan’s new green energy laws will save the state’s residents approximately $145 a year on utility expenses, but residents can expect to pay thousands more in supplemental energy costs per year under the green energy plan according to studies and analysis by the Mackinac Center for Public Policy.

Claims have been made yet; I could not find one independent study cited by the media. We only need to look at China’s actions. They are building 1,000’s of coal plants. Like many Americans, China recognizes that green energy is inefficient and extremely expensive when it is not subsidized by the taxpayer, you. These rules and regulations put average American at a serious disadvantage and even worse undermines our ability to compete internationally.

Illinois raises the bar for aiding and abetting criminals. Landlords, homeowners, and property owners in Illinois will be required under state law to rent or sell property to noncitizens and illegal aliens beginning on Jan. 1. This means that being here in the US illegally, which means that the very first thing this person did was to violate our immigration laws making them an illegal alien and here in our country illegal. Now rewarded them with access to owning or renting property competing with citizens for those same homes or rentals. Yet, citizens who currently rent or want to buy go through a background check with the bank, credit union, or rental agency when they fill out an application for rent or a mortgage that asks if you are a citizen. I guess we can throw out the benefits of being a citizen in our country if we do not uphold the rule of law. HMMM.

According to a separate bill in IL, illegal immigrants will also be allowed to obtain a standard driver’s license starting in mid-2024. How do they pass a background check on that or apply for insurance if they have broken the federal law? Forget the plethora of federal laws that this violates and your rights as a citizen and the protection we deserve as citizens and pay for as taxpayers, your insurance is about to go up along with the cost of government, driving, renting, or buying property. The competition created by these regulations and new laws will increase the costs and only promote more illegal behavior.

 

U-Haul Index…Guess which state came in dead last again?

What does it mean – California!! Or on the brighter side the number one state for people fleeing for economic freedom, safety, education, and jobs. Citizens of CA are exiting at record numbers according to U-Haul. Evidently, elected officials in Sacramento and Governor Newsome have not kept up on the reality of their policies. Since COVID U-Haul has announced several times that they ran out of trucks and trailers in CA for out of state moves. Meaning, if you rented in CA, you could only drop the trailer or truck off in CA.

I have always said that the dollar is like water, it always moves to the area of least resistance. CA, MI, IL, NY, NJ, MA, and a few others are proving that citizens are a lot like water. They will only tolerate so much. My problem is I see a problem and I want to fix it. Just plain stubborn.

When the government mandates what you buy or what is available it is called socialism. When they penalize and threaten you with fines, prison and use of force or the threat of a weapon to enforce a law you did not vote for, we still call this communism. I remember when the schools taught our children the Constitution and the meaning of “Taxation Without Representation” and the results of those actions. Thank God for our founding fathers. It created the greatest nation on earth. The USA.

Let’s make 2024 the year of economic freedom and accountability. Ask yourself, what does economic freedom mean to you. What are your personal and family goals, aspirations, concerns, or causes that you care about? We look forward to serving and earning your trust every day.

 

Let’s roll America!!

Doug De Groote, CFP®, MBA, CTC
Managing Director

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