U.S. Rep. Billy Long voted to cut government red tape that is hindering small businesses' efforts to create jobs for Americans.
"As a former small businessman I know that the most important thing Washington can do to help small businesses create jobs is to get out their way," Long said. "Small businesses are the lifeblood of our economy and until Washington stops with the oppressive regulations there will continue to be uncertainty about their future, which is hindering job growth and our nation's economic recovery."
The Obama administration has had under review more than 400 regulations classified as economically significant since taking office. A regulation is classified as economically significant if the proposed regulation will have an annual impact on the economy of $100 million or more.
The Red Tape Reduction and Small Business Job Creation Act (H.R. 4078) would impose a moratorium on any new economically significant regulation until unemployment drops below six percent nationally, which will save at least $22.1 billion and thousands of jobs. The legislation would also prohibit "lame duck" administrations from issuing economically significant regulations. Under this legislation the Securities and Exchange Commission and Commodity Futures Trading Commission would be required to conduct more detailed cost-benefit analyses on proposed regulations.
According to the Small Business Administration (SBA) small businesses have created 64 percent of all new jobs in the past 15 years and face an annual regulatory cost of $10,585 per employee, which is 36 percent higher than the regulatory cost facing large firms. The SBA estimated in a 2010 report that the total regulatory costs amount to $1.75 trillion annually, which would be enough money for businesses to provide 35 million private sector jobs with an average salary of $50,000.