Stop the Assault on Americans' Pocketbook & the Economy There are good regulations that keep us safe and

keep our environment clean and then there are regulations that increase the costs for Americans and businesses, which only holds back our economy from creating jobs. • Let me be clear: regulations are needed. Many regulations keep us safe, but in many instances the federal government needs to stop trying to fix things that aren't broken. At the end of the day, federal regulations come with added costs for Americans and businesses alike. • According to a report released by the government last year (SBA, Impact of Regulatory Costs on Small Finns, 2010), the average U.S. household pays nearly $15,600 in added costs directly linked to federal regulations each year. Americans know consumers and businesses are over-regulated. They know that unneeded regulations increases the price of goods and services made in America, leads to job losses here at home, and eventually pushes American jobs overseas. • We can agree or disagree about whether we need more or less regulations, but let's all agree that now is not the time to pile these burdens on the economy. As regulations have grown over the years, so have the price of everyday household items. • Americans know the amount of federal regulations have drastically increased over the years. As they've watched these regulations increase, they've seen the prices of goods and services continue to rise. • Regulations aren't cheap. According to a government report last year, federal regulations cost people and businesses in the U.S. nearly $1.75 trillion each year (SBA, Impact of Regulatory Costs on Small Firms, 2010). These added costs are passed on to Americans and hurt their pocketbooks. It's hard to imagine how much $1.75 trillion is, but put it this way: in 2010, the government spent $3.5 trillion. • In other words, the costs of regulations would equal half of what the government spent in 2010. • Put another way: in this year alone, the deficit is projected to be $1.3 trillion, well below the $1.75 trillion in added costs imposed by federal regulations. • 74 percent believe that businesses and consumers are over-regulated. • 73 percent concur that every time the federal government mandates a new regulation of America's large and small businesses, the prices of American made goods and services like gasoline and food go up. • Voters believe that regulations will hinder job creation, as most believe the result of new regulations will either be job losses (47 percent) or increased prices for American made goods and services (22 percent). • 70 percent of voters believe regulations on businesses will result in more jobs moving overseas. • 67 percent of American voters believe regulations have increased over the past few years. Stop the Assault on Businesses Small businesses bear the brunt of federal regulations. It's time we put small businesses on a level playing field, so they don't drown in the government's red tape. • According to a government report, "small businesses...bear the largest burden of federal regulations" (SBA, Impact of Regulatory Costs on Small Firms, 2010).

This isn't a surprise. While large businesses may be able to use loopholes, mom-and-pop stores don't have the benefit of having a team of lawyers and lobbyists to get around the government's red tape. • With 9.1 % unemployment, American workers and small businesses cannot afford more rules that make it harder for businesses to grow and hire more workers. • Here are the facts: over 54,000 pages, many of which represent regulations, have been added to the Federal Register during this year alone. We don't need thousands and thousands of pages of new rules telling small businesses what to do. There are regulations that keep us safe, and keep our water clean, and then there are needless regulations that are just stupid. Regulations that don't pass the common sense test are too costly for small businesses and American consumers. • Federal bureaucrats are working on regulations that could force farmers across America to limit the amount of dust in the air on their farms. • Federal bureaucrats are increasing fuel efficiency standards, which, by the Obama Administration's own admission, will increase the cost of a car by $1,100. Some suggest it will increase the cost even more. • Recently, Federal agencies seized wood at Gibson guitar factories presumably under the belief that Gibson purchased wood that is endangered. o While not all of the details are known about this raid, Gibson guitar's CEO said that the wood is from certified supplier. o In a news article, Gibson's CEO suggests, “the Feds are using the aggressive enforcement of overly broad laws [and regulations]..." to come after the company. o And the cost to Gibson for this raid? $2 to $3 million. • 66 percent believe that the increasing number of regulations have created uncertainty for large and small businesses. The Obama Administration Must Stop Overstepping Its Bounds Bureaucrats are trying to accomplish their objectives through regulations when they couldn't get the law passed through Congress; doing so is wrong and undermines the strength of our democracy. • It's hard to believe, but Congress is not in a lead position with regard to administering federal regulations. • The fact is that someone must administer and enforce the laws that Congress writes. And the laws that Congress writes are administered through regulations. • Laws should be clear, direct, and reliable. The same goes for government regulations that implement Congress' laws. Sadly, this is not often the case, so laws and regulations are interpreted by different Presidential administrations in many different ways. • The federal agencies that create regulations are many times unaccountable bureaucrats who are more concerned about seeing their power and influence increase more than doing what is right for the country. • While they are thinking about their own power, they fail to consider that unneeded regulations hurt our economy and stifle job creation. When regulations aren’t clear, direct, and reliable, they can create great uncertainty, which makes businesses hesitant to invest and create jobs. • The Obama Administration is reaching too far to claim regulatory control over things that Congress never intended for it to control. This must stop.

• •

• •

The problem is about excessive interference by unelected and unaccountable bureaucrats. We all want reasonable, common-sense regulations that keep us safe – but that’s not what many of the Obama Administration’s regulations are doing. What are they doing? They are issuing regulations that they couldn’t get passed through Congress. By doing so, they are undermining what businesses need most, especially in these economic times: certainty. o They’re controlling everything from where businesses can locate to how much dust farmers and ranchers may produce. The cost of regulatory burdens from new regulations just this year is $67.4 billion – which is nearly the size of the entire budget for the state of Florida. 69 percent believe that agencies who enforce regulations fail to consider how their decisions lead to increased prices for consumers and job losses.

The Case of Boeing Yes, it is hard to believe the government is trying to control where businesses locate when businesses are just trying to create jobs. But they are. Look no further than South Carolina. • Boeing, a United States based company that manufactures commercial airplanes, recently finished building a plant in South Carolina to build a new type of airplane. This new plant will create thousands of new full-time jobs. • However, a federal agency sued Boeing before the plant's opening, claiming that Boeing's decision to locate in South Carolina was retaliation against union activities in Washington State, where Boeing is headquartered. • Let's state the facts: the investments in Facilities and jobs in South Carolina are all new jobs, and even though they are non-union positions they will not come at the expense of jobs held by union workers in any other state. To be clear, no one lost his or her job at Boeing because of this expansion. • The lawsuit was not filed until Boeing completed the plant, which was years in the making. • According to a federal agency, however, Boeing decided to “transfer a second production line to a non-union facility in South Carolina for discriminatory reasons." What law is the federal agency using to make its regulatory claim? The National Labor Relations Act, which recognizes a strike as a fundamental right of workers. • Let's not insult the intelligence of Americans. They know this is regulatory overreach. They know what's going on here: a federal agency is doing whatever it wanted to do in the first place, and it found any regulation on its books to make it work. • The bottom line: the regulators were out to make a point, and they were going to find anything they could - they were going to stretch the limit of the law beyond its breaking point - to do what they wanted to do. • We should be clear to the American people: in some ways it would be easier for Boeing, the largest manufacturing exporter in the United States, to move overseas than it would be to move across state lines. • This is just plain wrong. In a time when we need jobs, we don't need government making up rules on the spot. We need a government that promotes a climate of job creation. This is just the tip of the iceberg because if they could do it to Boeing, they could do it to any other business in America.

78 percent side with Boeing in agreeing that a business should not be able to open a facility in any state, and that the government should not be involved in the decision about where Boeing or any company locates new plants.

Obama Knows We Have a Regulations Problem President Obama knows the United States has a regulations problem. That’s why he recently announced a plan to rollback some regulatory burdens. It’s a start, but we should do more now. • The President's regulatory rollback doesn't go far enough - it saves an estimated $10 billion over five years, but considering that the government estimates that federal regulations cost businesses and people over $1.75 trillion per year (SBA, Impact of Regulatory Costs on Small Firms, 2010), aiming for $10 billion in savings is like saving a few dollars a week to payoff your mortgage. • It's like so much of what we hear from the President. It sounds great...but the reality is, it's just more of the same. Separately, the President recently proposed halting a regulation that would cost businesses nearly $90 billion each year. • At the time, the President said: “I have continued to underscore the importance of reducing regulatory burdens and regulatory uncertainty, particularly as our economy continues to recover.” • I agree, Mr. President. And that’s why I hope you’ll agree that we must do more now. We must do more now to create economic certainty by reducing unneeded regulatory burdens. Since regulators have abused their powers, Congress should step in and no longer allow costly regulations to become final without the explicit approval from Congress. • As with nearly all government regulations, Congress has no meaningful say on final regulations. • Hard to believe? Yes. But it is a fact that Congress creates a basic framework in laws and lets regulators fill in the details. • Congress should be more involved in the regulations that bureaucrats write because Americans can vote Congress out of office, but cannot vote the regulators out of office. • 65 percent believe that Congress and the President should approve regulations before they are enforced.

Sign up to vote on this title
UsefulNot useful