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Flores Votes to Cut Regulatory Red Tape for American Job Creation


Location: Washington, DC

Today, the House of Representatives passed H.R. 4078, the Red Tape Reduction and Small Business Job Creation Act. This legislation provides measures that would end the uncertainty facing small businesses and job creators as a result of excessive regulatory rule writing. Following passage of H.R. 4078, U.S. Congressman Bill Flores (R-Texas) issued the following statement:

"So far this year, the federal government has issued over 41,000 pages of new rules and regulations. These form a part of the over 3,100 regulations that the Obama administration has classified as either "active' or "long-term' actions. Of these regulations, 167 are deemed "economically significant', meaning that each of those regulations will cost the American economy $100 million or more during each year. Cumulatively the cost of all the Washington red tape is $1.75 trillion, in other words, over 10 percent of our current gross domestic product.

"One of the most egregious red-tape initiatives of this administration is the Dodd-Frank law. According to the House Committee on Financial Services, just 244 of Dodd-Frank's 400 rules have been written, and they already consume 7,365 pages. It will take job creators 24.3 million hours every year just to comply with the first half of the Dodd-Frank regulations. For the sake of comparison, the effort to build the Panama Canal was only about 12 million hours.

"With today's passage of the Red Tape Reduction and Small Business Job Creation Act, we can bring an end to excessive and overly burdensome regulations. This bill imposes a moratorium on any new regulation until unemployment drops below 6 percent nationally. Small businesses create the majority of new jobs which our economy desperately needs. In order to give small businesses the confidence they need to grow and create jobs, we have to cut the regulatory red tape in Washington. I stand committed to providing small businesses the certainty they need to grow in this fragile economy."

H.R. 4078 will impose a freeze on economically significant regulations that harm the economy until unemployment reaches 6% or below. It permanently prevents "lame duck" administrations from issuing economically significant regulations. The bill will also prevent "sue and settle" tactics, by ensuring that impacted parties have a right to intervene before federal agencies agree to binding legal settlements that require them to issue new regulations. This reform package also includes recommendations from the president's job council.

Congressman Bill Flores represents the 17th District of Texas and is an entrepreneur, former energy executive, Certified Public Accountant (CPA) and member of the House Budget, Natural Resources and Veterans' Affairs Committees.

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