CLAIM: “Middle-class economics means helping working families feel more secure in a world of constant change." (President Obama, State of the Union Address, January 20, 2015)
SOTU FACT: The president’s regulatory onslaught squeezes the very middle-class families he claims to be trying to help.
- Regulatory costs are passed on directly to middle-class families. American Action Forum research found that “36 regulations issued during the Obama Administration will increase consumer prices by more than $11,000.” For example, regulations will increase the cost of household products – including fluorescent lamps, microwaves, air conditioners, and dishwashers – by up to $1,600.
- Regulatory costs disproportionately hit small manufacturers. According to the National Association of Manufacturers, small manufacturers incur regulatory costs of $34,671 per employee per year – more than three times that of the average American company.
- ObamaCare alone has small businesses drowning in red tape. In its first four years, ObamaCare’s effect on small businesses amounts to $1.9 billion in regulatory costs and 11.3 million hours of compliance. This amounts to a “regulatory tax” of 3 to 5 percent. Again, this is just the cost of one law’s regulations.
With small businesses expecting “an even more aggressive regulatory agenda,” the House has already passed bipartisan legislation that would flip the script on Washington bureaucrats by forcing them to regulate with maximum transparency and the least possible cost.
More common-sense solutions to reduce burdensome regulations and help small businesses grow and hire will follow. Our focus should be on growing America’s economy, not Washington’s bureaucracy.