The Detroit News - Saluting Small Business, Protecting American Jobs

Op-Ed

By Representative Kerry Bentivolio

Hardworking entrepreneurs deserve recognition for being the backbone of our nation's economy. That's why we need to celebrate National Small Business Week. All across this country, the owners of small businesses are embodying the American Dream, employing millions of their neighbors in the process. Whether in their basement or garage, at a lemonade stand or in a mom-and-pop shop, we need to commend those who take risks to move our economy into the future while making our lives better in the process.

Unfortunately, too many small business owners find it difficult to start a company these days. Only a few months ago, Fred DeLuca -- the founder of Subway -- told CNBC, "It's continuously gotten worse because there's more and more regulations and it's tougher for people to get into business, especially a small business. I tell you, if I started Subway today, Subway would not exist, because I had an easy time of it in the "60s when I started and I just see a continuous increase in regulation."

That's unacceptable. Today, obstacles are being needlessly placed in the way of entrepreneurs. Three barriers to opening a new company are affecting our economic climate: Obamacare, taxes, and an out-of-control regulatory system. We need real change to help put America back to work.

The Democratic healthcare plan is collapsing under its own weight, bringing American businesses down with it. Last week, news broke that the small business exchanges created by the president's health care plan are struggling to find insurance companies willing to participate. This makes the exchanges nearly unworkable.

The added costs created by the health care law, both from higher premiums and employer mandates, have created stumbling blocks for many entrepreneurs who want to launch a business. This problem can only be resolved with a full repeal of the Affordable Healthcare Act, followed by thoughtful reform that fosters economic growth while empowering Americans to purchase health insurance.

When asked to name the biggest detriment facing their business, however, most entrepreneurs cite taxes and extraordinarily complex regulations. They say that the rates are too high and regulations too complicated. They're right. Comprehensive tax reform is desperately needed and has become a top priority for the House of Representatives. Led by the chair of the Ways and Means Committee, Michigan's own Dave Camp, we are working hard to lower rates and simplify tax laws.

Entrepreneurs need to know their future tax bill before they create new businesses and make long-term investment.

Finally, for many employers there exists an ever-present fear that they may be sanctioned or put out of business for a violation of the seemingly endless arrays of federal regulation. At over 80,000 pages, the list is so long that it is almost unknowable.

That's why the first piece of legislation that I introduced aimed to correct this situation.

The Protect Small Business Jobs Act offers a sensible, straightforward correction to regulatory enforcement. The bill gives small businesses a grace period if they are found to be in violation of a federal regulation.

This gives small business owners time to correct problems before being sanctioned, which could force them to close their doors.

If the business is making a good-faith effort to correct the problem, and if the problem is corrected at the end of the grace period, the sanction is waived.

Regulations do not exist to punish. We should assume that entrepreneurs are trying to follow the law.

No business is permitted to ignore regulations on an ongoing basis. Nor are those who offer an imminent threat to the public or repeat violators protected by this bill. Instead, small companies receive a chance to become compliant without being hit with devastating fines.

This common sense approach encourages the great American tradition of entrepreneurship and competition.

Americans believe the government favors only large businesses at the expense of the small businesses. And they're right.

It's time to give our entrepreneurs an opportunity to compete with firms that have entire divisions devoted to compliance.

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