REGULATION NATION: The Hidden Small Business Tax
WASHINGTON – Days before the filing deadline for federal income taxes, members of the small business community told Congress that new government regulations are making it harder and more costly for small companies to start, grow and expand their business. Witnesses at today’s hearing described how new rules from the Obama administration are a “hidden tax” on entrepreneurs as they struggle with high compliance costs and expensive new mandates.
“We need to lighten the massive regulatory burden and make it easier for small businesses to start, grow and thrive, said House Small Business Committee Chairman Steve Chabot (R-OH). “That’s why it is critical that federal agencies analyze the small business impacts of new regulations and reduce unnecessary and excessive burdens. Agencies have been required to do this for over 35 years but still avoid these requirements.”
“Small businesses are the engine of our economy. Unfortunately, they also bear a disproportionate weight of government regulation,” testified Karen Harned, Executive Director, National Federation of Independent Business (NFIB) Small Business Legal Center. “The effects of overregulation require an enormous expense of money and time to remain in compliance. The effort required to follow these and other regulations prevent small business owners from growing and creating new jobs.”
“Our regulatory system is broken, unnecessarily complex and inefficient, and the public supports efforts to streamline and simplify regulations by removing outdated and duplicative rules, said Rosario Palmieri, Vice President, Labor, Legal and Regulatory Policy, National Association of Manufacturers. “Through a thoughtful examination of existing regulations, we can improve the effectiveness of both existing and future regulations.”
In his testimony, Palmieri also reiterated the National Association of Manufacturers’ strong support for H.R. 527, the Small Business Regulatory Flexibility Improvements Act, Chairman Chabot’s legislation to ensure that all federal agencies assess the impact of the new regulations on small businesses and consider alternatives to reduce burdens before they act.
Chairman Chabot’s bill passed the U.S. House last year with bipartisan support and has been awaiting action in the Senate. At today’s hearing, Chabot challenged the Senate to act quickly on his legislation.
“So we need to understand the problems that small businesses are facing and develop bold solutions,” Chabot said. “The legislative window is closing so I hope the Senate will act quickly to move this important bill.”
Chairman Chabot also serves as co-chairman of Speaker Paul Ryan’s House task force on reducing regulatory burdens. He penned an op-ed for FoxNews.com this week describing the work of the task force and outlining steps Congress can take to reduce the regulatory burden on America’s small businesses.