Regulations are a direct cost of doing business, and like all costs, these get passed on to consumers.
Here is a defense contractor talking about the cost of new tax rules:
To handle the increase in work stemming from new rules, Joseph Bellino, chief financial officer of aerospace and defense manufacturer Ducommun Inc. has added about four people to his department over the past year, expanding his finance staff by about 15%.
His team has been poring over customer contracts and debt covenants to see if they will be affected by new revenue-accounting rules expected in the first quarter, among other regulations.
“The regulatory environment drives a lot of the work that we do,” he said.