House Judiciary Committee Chairman Lamar Smith (R-Texas) today called on President Obama to exercise regulatory restraint in order to protect small businesses and America's job creators from the growing costs of federal regulations.
Chairman Smith: "As President Obama prepares for his speech on the state of the economy, he should consider the burden his Administration's regulations have imposed on American businesses. A recent Heritage Foundation study reported that in his first two years in office, President Obama imposed 75 new major rules costing the private sector more than $40 billion. And more than 4,200 new regulations are in the pipeline. Uncertainty about the cost of these upcoming regulations discourages employers from hiring new employees and expanding their businesses.
"More rules and regulations will not help with job creation. According to the Small Business Administration, federal regulations cost our economy $1.75 trillion per year. That's money that should be going toward new products, innovations, business expansion and job creation. Instead of practicing for another public speech, the President should learn to practice regulatory restraint."
Reducing the regulatory burden on businesses is a priority for the House Judiciary Committee. The REINS Act (H.R. 10) requires congressional approval for any regulation with an economic impact of at least $100 million before it can be imposed on American businesses. The Regulatory Flexibility Improvements Act (H.R. 527) requires federal agencies to identify and reduce the costs new regulations could impose on small businesses. And the Committee is planning to introduce new legislation to lower the costs of regulations on all businesses and provide more transparency to the regulatory process. Each of these bills is a step in the right direction for the economy, small businesses and America's job creators.