The majority of American small business owners say excessive red tape coming out of Washington is making it harder for them to grow their businesses and create jobs. House Republicans are listening, and taking action this week on the Red Tape Reduction and Small Business Job Creation Act (H.R. 4078) - part of the Plan for America’s Job Creators – which will put the brakes on the Obama administration’s excessive regulations that are weighing on the already-weak economy. Here’s a snapshot of the regulatory onslaught small businesses are facing, and why this legislation is critical for helping the economy grow and create jobs:
- $22.1 Billion: Estimated Cost of Major New Obama Administration Regulations. The Obama administration currently has 24 “economically significant” regulations in the works that will result in “$22.1 billion in costs and more than 2.6 million paperwork burden hours,” according to a recent analysis by the American Action Forum.
- $46 Billion: Estimated Cost of 106 Major Regulations that Have Already Been Implemented. According to the Heritage Foundation, “a total of 106 new major regulations have been imposed” by the Obama administration “at a cost of more than $46 billion annually, and nearly $11 billion in one-time implementation costs” – a five-fold increase over the previous administration.
- $515 Billion: Total Cost of More than 4,000 New Regulations in the Pipeline. The National Federation of Independent Business – the nation’s largest small business organization – says “the next four years could bring a tidal wave of costly federal regulations impacting U.S. businesses and consumers.” According to the NFIB’s analysis, “there are currently 4,128 federal regulations in the pipeline which, if implemented, will impose costs of more than $515 billion on the U.S. economy.”
- 34,000 Pages: Compilation of All U.S. Regulations. According to former Congressional Budget Office Director Douglas Holtz-Eakin, the Federal Register – the sum of all Washington regulations, many imposed on job creators – is 34,000 pages in length and weighs in at more than 340 lbs. (American Action Forum Video, 6/13/11)
- $10,585: Financial Burden Small Businesses Face Per Employee to Comply with Federal Regulations. According to the Small Business Administration, small businesses pay $10,585 per employee each year to comply with federal regulations – “36 percent more per employee than larger firms.”
The onslaught of costly government regulations is taking its toll on small business owners like John Doble, part owner and operator of a small, family-owned business in Florida who writes in the Tampa Tribune:
“One of the greatest challenges to my company’s well-being comes from federal agency regulation. Every time my company looks like it might be above water, we are burdened with another regulation or rule that costs us money and cuts into my and my staff's time and the time I could be using to grow my business. In fact, we had to hire a company just to keep us advised on all the rules and regulations coming from Washington because it seemed endless. … This excessive regulation will continue to impede U.S. job growth. Small businesses generate about two-thirds of America's new jobs, but unnecessary rules curtail the innovation and economic growth they promise.”
“All evidence points to another slowdown in the U.S. economy,” MarketWatch reported yesterday, at a time when unemployment is on the rise in more than half of U.S. states. Small businesses create the majority of new jobs the economy needs to get back on track, but they cannot do so with all of the uncertainty surrounding thousands of new regulations and the threat of a tax hike scheduled to take effect on January 1st.
The House has already passed more than 30 jobs bills aimed at rolling back excessive regulations and creating a better environment for private-sector growth that are being blocked by Senate Democrats. The House will add to that stack with passage of the Red Tape Reduction and Small Business Job Creation Act this week, and by voting to stop all of the tax hikes next week. It is up to Senate Democrats to act on the House-passed jobs bills, and work with Republicans to stop the small business tax hike that puts more than 700,000 American jobs at risk. Learn more about the Republican jobs plan at jobs.gop.gov, and join the conversation about stopping the small business tax hike using the hashtag #stopthetaxhike on Twitter.