‘The Regulated State of the Union’ – New Report by The Center for Regulatory Solutions01/27/2014
“In his ‘State of the Union’ address, President Obama should speak to the public’s concerns about the costs and burdens of overregulation, which prevent small businesses and entrepreneurs from creating new jobs, accessing capital, innovating, and competing in the global marketplace.” – CRS Report
WASHINGTON, D.C. – Ahead of President Obama’s State of the Union address, the Center for Regulatory Solutions (CRS), a project of the Small Business and Entrepreneurship Council, released a new report, “The Regulated State of the Union,” that recommends specific actions to remove the burden of overregulation on small businesses and entrepreneurial firms and strengthen the environment for growth and investment. These actions will ensure that these firms can innovate, access and raise capital, and create jobs in 2014.
“Today the Center for Regulatory Solutions is releasing a new report that calls on President Obama to work with Congress to increase transparency and accountability in the regulatory process,” said Karen Kerrigan, President and CEO of the Small Business and Entrepreneurship Council. “We want the President not just listen to concerns from small business owners, but to take concrete steps to alleviate the burden of overregulation, which is stifling innovation and raising unnecessary costs that destroy jobs.
“From our own survey research, we know that an overwhelming majority of Americans think regulations are hurting the competitive advantage of America’s small businesses, and they want policymakers to put regulatory reform at the top of their agenda.”
The CRS report includes polling results showing:
- 68% believe regulations are created by “out-of-touch people trying to push a political agenda” rather than by “well-intentioned people trying to address real challenges” (26%).
- 72% believe that regulations are created “in a closed, secretive process” while just 21% say they are created in an “open, transparent process.” Three-in-five (59%) disagree that they could easily find out about what regulations the federal government is considering.
- More than half (53%) believe that there are “too many” government regulations on businesses, compared to 19% who believe there are “not enough” and 25% who say the amount of regulations is about right.
Specific actions President Obama can support to improve transparency and accountability, as well as strengthen economic growth and investment and create jobs include:
- Revising the Administration’s estimate of the social cost of carbon so that it relies on the most rigorous data and methods—including those prescribed by the White House Office of Management and Budget—to calculate regulatory benefits;
- Encouraging the Senate to pass S. 1923 (passed by the House as H.R. 2274, 422 to 0), a bill that would simplify and reduce regulatory costs associated with the sale and purchase of smaller privately held companies; and, in efforts to fix harmful provisions of Dodd-Frank, encourage the Senate to pass H.R. 1105, the Small Business Capital Access and Job Preservation Act (passed by the House, 254-159), which lifts redundant and burdensome regulations on private equity;
- Encouraging the Securities and Exchange Commission to modify proposed investment crowdfunding rules (Title III of the JOBS Act) so they produce a practical and cost-effective way for entrepreneurs to access capital, as intended by Congress;
- Supporting the EPA in reducing the renewable fuel standard. A reduction in the 2014 statutory volumes of renewable fuels will lower food and feed prices and not disrupt business vehicles. The mandate needs to be eliminated altogether.
- Encouraging the FCC and its new Chairman Tom Wheeler to pursue policy principles that shun proscriptive regulation. The Chairman should also move forward with market-driven spectrum auctions. Such actions would accelerate broadband deployment and drive investment in next generation networks, which will help entrepreneurs grow, adopt new technologies and develop their businesses from anywhere.
- Halting EPA’s destructive greenhouse regulatory regime under the Clean Air Act to avoid raising electricity costs for all consumers, including small businesses:
- Calling on OSHA to adhere to its statutory obligations and seek small business community input on its proposed crystalline silica rule, which relies on very old data and outreach performed a decade ago.
CRS is a new initiative by the Small Business and Entrepreneurship Council (SBE Council) launched this month which aims to make the regulatory process more open and transparent as well as help increase public awareness of how burdensome federal rules are harming small businesses, job creation, economic growth, and competitiveness.
About Small Business Entrepreneurship Council
SBE Council is an advocacy, research, training and networking organization dedicated to protecting small businesses and promoting entrepreneurship. For twenty years, SBE Council has worked to educate elected officials, policymakers, business leaders and the public about policy approaches that enable business start-up and growth.