House Small Business Committee Chairman Sam Graves (R-MO) today issued the following statement on the Red Tape Reduction and Small Business Job Creation Act (H.R. 4078), a package of bills that would help to eliminate excessive government regulations that make it harder for small businesses to grow and create jobs:
“The best way for Washington to address our unemployment crisis is to help small businesses grow. When they invest in their companies, it stimulates the economy more than the federal government ever could. And, to implement the most successful investment strategy requires some certainty about what the future holds. The Red Tape Reduction and Small Business Job Creation Act halts non-emergency regulations to create an environment for growth. In a recent small business survey, 78 percent of small businesses said excessive regulations and taxes make it harder for them to hire. This shouldn’t be a surprise, considering the annual regulatory costs for small firms are 36 percent higher than those facing larger firms. The expense of complying with excessive federal regulations often takes away resources that small businesses would use to create jobs.
“The House has passed more than 30 jobs bills that will help the private sector, including the Small Business Committee’s Regulatory Flexibility Improvements Act (HR 527), a bill that would ease regulatory burdens on small business. Senate Majority Leader Harry Reid’s inaction on this and other House-passed jobs bills won’t stop us from continuing our robust pro-business agenda, because the private sector builds businesses and creates jobs, not the government.”
The Small Business Committee has held more than 30 hearings on regulatory burdens on small companies. Last year, Chairman Graves joined House Judiciary Chairman Lamar Smith (R-TX) in introducing the Regulatory Flexibility Improvements Act of 2011 (HR 527), legislation that would ensure that federal agencies assess the costs of regulations to small businesses and if significant consider less-burdensome alternatives. On December 1, 2011, the House passed HR 527 by a vote of 263-159.
The Red Tape Reduction and Small Business Job Creation Act (H.R. 4078) includes:
• Regulatory Freeze for Jobs Act (H.R. 4078) by Rep. Tim Griffin (AR-02): stops all new “significant” federal regulations until the national unemployment rate falls to six percent or lower. The unemployment rate has been higher than eight percent for 41 consecutive months.
• Midnight Rule Relief Act (H.R. 4607) by Rep. Reid Ribble (WI-08): stops controversial “midnight regulations” from being imposed during a “lame duck” period after an election.
• Sunshine for Regulatory Decrees and Settlements Act (H.R. 3862) by Rep. Ben Quayle (AZ-03): improves transparency and accountability in the “sue-and-settle” process where special interest groups try to impose new regulations through lawsuit settlements with regulatory agencies.
• Responsibly and Professionally Invigorating Development (RAPID) Act (H.R. 4377) by Rep. Dennis Ross (FL-12): streamlines federal permitting and environment regulations, and provides more certainty to small businesses, manufacturers, farmers, and all private-sector job creators.
• Unfunded Mandates Information and Transparency Act (H.R. 373) by Rep. Virginia Foxx (NC-05):
exposes the hidden costs of federal red tape by requiring analysis of how changes in federal law affect state and local governments, and small business job creators.
• SEC Regulatory Accountability Act (H.R. 2308) by Rep. Scott Garrett (NJ-05): requires the SEC to conduct cost-benefit analysis of new rules to ensure the benefits outweigh the costs to job growth.
• Consideration by Commodity Futures Trading Commission of Certain Costs & Benefits (H.R. 1840) by Rep. Michael Conaway (TX-11): requires the CFTC to conduct cost-benefit analysis of new rules to ensure the benefits outweigh the costs to job growth.