Hot Topic: Red Tape Reformation
Jul 27, 2012 -
Government regulations can be important and necessary tools. But the Washington Regulation Machine is out of control.
The House voted on a legislative package that would reform our regulation system so that it stops working against small businesses, streamlines the process and considers a cost-benefit analysis before implementing rules.
In their own words:
Jeff Hamilton, of Sprecher Brewing Company, Milwaukee, WI: “This summer I had an auditor in my building for 13 and half weeks. He made us change every label for some reason. Things like, we are registered as Sprecher Brewing Company, and on some labels we wrote out “Co” instead of “company.” We are not registered that way, so we had to change every label written that way. That was a lot of cost. It employed a federal employee, but little else.”
Michael Farrell, President of Sentry Equipment Corp, Oconomowoc, WI: “I think a big issue is the regulatory environment, the EPA is out to shut down industry, far as I can tell. There is no cost-benefit analysis that seems to make any sense, and I think it has a lot of people scared. If you aren’t in their sights, you are probably soon to be in their sights.”
David Park, Co-founder, Job Creators Alliance: “Regulations have companies running scared. They are coming at businesses and some new regulations are already taking a toll, while others will soon. This could be a real deterrent to future entrepreneurs.”
By the numbers:
36: According to the Small Business Administration, small businesses face regulatory costs 36% higher than large businesses.
13: In 2012, the U.S. fell to 13 on the World Bank’s ranking in “Ease of Starting a Business.” That means it’s easier to start a business in three former Soviet Union countries, Georgia, Armenia, and Belarus, than it is to start one in America.
10,585: The Small Business Administration also found that regulations add $10,585 in costs per employee.
400: The Obama Administration has under review 400 “economically significant” regulations, each of which would have a likely effect of $100 million or more annually.
52: Under Obama, we have seen a 52% increase in completed regulations deemed economically significant.
41,662: In 2012 alone, the Federal Register (record of regulations) is 41,662 pages long.
26,500: The Dodd-Frank law has produced regulations with $7 billion costs and 26,500 individuals working full time just to complete the paperwork.
Obamacare has resulted in regulations that imposed:
159 new federal boards, programs and commissions
12,000 pages of new federal rules
$17.1 billion in private-sector burdens
59.2 million annual paperwork hours
Red Tape Reduction and Small Business Job Creation Act, passed by the House, would:
o Impose a freeze on economically significant regulations.
o Prevent lame duck administrations from issuing economically significant regulations. Regulations issued during the time between Election Day and Inauguration Day have been 17 percent higher than any other time.
o Create a streamlined process for consideration of federal permits for construction projects.
o Require agencies to conduct more thorough cost-benefit analyses of proposed regulations.