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Some in Washington Don't Understand that to Cut the Unemployment Rate, We Need to Cut the Red Tape


Location: Washington, DC

U.S. Rep. Rodney Alexander, R-Quitman, today issued the following remarks after the House voted in support of Red Tape Reduction and Small Business Job Creation Act:

"Since taking over the White House, this administration has proposed thousands of new regulations--with over 400 considered economically significant, meaning they are expected to have at least a $100 million impact on the economy. The difficulties posed by all of the different rules and regulations are definitely taking their toll, while others will soon.

"As the Federal Register grows by hundreds, if not thousands, of pages every week, this intricate web of federal rules hinders economic growth, increases costs to consumers, and destroys the entrepreneurial spirit that has made America what she is today.

"Especially in the 5th District, where Mom and Pops are the backbone of our economy, we are perhaps disproportionately affected. Our small businesses are persistently threatened by tax increases and an ever-stretching bureaucratic arm, and are expected to adhere to the same regulatory policies as large corporations.

"A 2010 study by the Small Business Administration (SBA) found that, per employee, small businesses face annual regulatory costs that are 36 percent higher than those facing large firms. Yet, rather than provide incentives for these businesses to expand and create jobs, the current administration attempts to raise taxes and impose unnecessary, burdensome layers of red tape that impede private sector investment and destroy jobs. To put it in perspective, this amounts to an annual regulatory cost of $10,585 per employee. Is this fair to impose such costs on these businesses, which have created over 60 percent of all new jobs in the last 15 years?

"What some in Washington don't understand is that to cut the unemployment rate, we need to cut the red tape. Luckily, House Republicans get it. To create a fairer system for our job creators, we must quit changing the rules at every corner. The Red Tape Reduction and Small Business Job Creation Act, which passed the House today, will go far in unwinding the complex maze."

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