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Flawed Regulations: A Tax on the American Dream

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Congressman Darrell Issa (R-Vista) today issued the following statement in honor of our country's 27.2 million small businesses celebrating U.S. Small Business Week. Supporting small business success and delivering effective regulatory reform are central to Rep. Issa's work both for California's 49th Congressional District and as House Oversight Committee Chairman. Issa has launched AmericanJobCreators.com to listen to, and learn from, the private sector entrepreneurs struggling under the weight of more than 150,000 pages of federal fine print.

"Small business is the backbone of our economy, but regulations coming from Washington prevent our job creators from growing and hiring," Issa said. "Entrepreneurs are telling us that government forces them to work longer and harder for less. Small Business Week is an important reminder that reckless spending and regulatory overreach cost real jobs, and stand between innovators and the American dream. That's why I'm committed to getting it right for our job creators with AmericanJobCreators.com."

Small businesses often risk everything to make it in America, supporting 59.9 million workers and their families without asking for government bailouts or extra government burdens. The United States' 27.2 million small businesses -- 3.2 million in California alone -- represent 99.7 percent of all domestic employers, creating 65 percent of new jobs in America according to the United States Small Business Administration. Small business drives our country's innovation too, earning thirteen times more patents per employee than large firms.

This success, however, is under siege by the growth of government rules and red tape. A 2010 study by the U.S. Small Business Administration revealed that American small businesses pay a disproportionate share of the cost of federal regulatory compliance. That expensive burden increased to $1.75 trillion per year in 2010. For outfits employing fewer than 20 workers, compliance with government regulation costs $10,585 per employee, without factoring in lost time and productivity. Small electrical contractor Jack Buschur testified before Issa's Oversight Committee that regulatory compliance costs him at least 20 percent of his time. "It has just been a real tough battle to survive the problems and the regulations being slapped on us," said Buschur in his testimony.

"As someone who has grown a small business from scratch, I understand that our entrepreneurs today must compete in a global economy hobbled by Washington red tape," Issa continued. "Small business owners are telling us that this government is putting the American Dream out of reach. Unless we relieve the nearly $11,000 per employee regulatory burden for small business, a return to American prosperity and private sector job growth will remain elusive."

AmericanJobCreators.com is a House Republican initiative to expose the true costs of government regulation and is a critical part of the ongoing conversation between Congressman Issa and the people of California's 49th Congressional District about the regulatory reform American small businesses need to support private sector job growth.


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