Here is an interesting article from the NYTimes, where a toy maker in Maine says that new toy safety regs are costing him $30K per year. Regs were implemented after toys with lead paint were let into the country from China. No one would dream of passing a business tax that would be cost someone so much. But a regulation just sails through. This really epitomizes the need for a better institutional response to this issue.

http://www.nytimes.com/2009/10/31/business/smallbusiness/31toys.html?scp=1&sq=maine%20wooden%20toys%20beeswax%20regulation%20china&st=cse