Red tape is a sticky subject for the Obama administration. The rhetoric suggests a sincere effort to reduce the regulatory burden on small businesses. The reality is a steady rollout of new, costly regulations and a mild retrospective review process that has led to more discussion than action. According to The Heritage Foundation, the cost of major federal regulations increased by $70 billion during the President’s first term.

On January 18, 2011, in an executive order, President Obama directed agencies to look at the regulations already in place and find ways to reduce the burden on small businesses. An effort I support. So, in a hearing this week, the Committee took an in-depth look at if this review is getting the job done. Agencies have largely responded to the President’s directive in the Washington way – they studied it and generated paperwork and stated that they followed it. They did make a smattering of changes that nip around the edges, but real reductions of the burden on small businesses are negligible, and dwarfed by the new rules being generated at a record pace. It’s a missed opportunity by the administration to give small businesses a boost during the tough economic times.

Perhaps this congressional oversight will spur a more serious look at changes that will make tangible reductions to the burden on small businesses. Small businesses are the lifeblood of economic growth, and the mindset of federal agencies must change if we are to start to unravel the red tape that is stifling job creation.

Sincerely,

Sam Graves
Chairman

Latest Committee Action

On Wednesday, the Committee held a hearing to review the Obama administration’s record on reducing the regulatory burden. Any burden-reducing actions have been overwhelmed by the fast-growing thicket of red tape. Like an overgrown forest, this regulatory growth must be pruned back. According to the Office of Management and Budget, in Fiscal Year 2012, 14 major rules alone imposed an additional $14.8 to $19.5 billion in annual costs, which was the costliest year on record for federal regulation. By comparison, there were only 6 major rules, ten years ago, in Fiscal Year 2003, imposing only $1.9 to $2 billion in annual costs. We want small businesses to grow, not the government.

On Thursday, three Members of the Committee introduced legislation that will help American small businesses grow their company through participating in trade. Chairman Sam Graves (R-MO), Rep. Steve Chabot (R-OH), and Small Business Subcommittee on Agriculture, Energy and Trade Chairman Scott Tipton (R-CO) crafted legislation aimed at reducing some of the key barriers and obstacles faced by small business exporters, in honor of World Trade Month. CLICK HERE to read more about the legislation.

Also on Thursday, the Small Business Subcommittee on Health and Technology held a hearing to examine the economic effects of the health care law’s insurance tax on small businesses. Beginning in 2014, the health care law imposes a new tax on the health insurance policies that most small businesses buy. The amount of the tax will be $8 billion in 2014, increasing to $14.3 billion in 2018. A recent NFIB Research Foundation study estimated that the tax will raise the cost of employer-sponsored insurance by 2 to 3 percent, imposing a cost of nearly $5,000 per family by 2020.

News from Washington

On Thursday, the House passed the Full Faith and Credit Act, H.R. 807 by a vote of 221-207. This legislation would ensure timely payment of national debt obligations, even if the debt ceiling is reached, to take the threat of default off the table. The focus should be on changing course from the nation’s serious spending problem for the sake of future generations that are facing a growing debt burden.

Small Biz Resources