Increased Regulations May Restrain Trump’s Economic Agenda
Breitbart reports President Obama has increased the “US regulatory state by 12 percent in one month,” which Breitbart says “may restrain how fast President-elect Trump [can] implement his economic agenda.” The article cites a study that “detailed the disproportionately negative impact regulations have on smaller businesses.” The average cost per employee to comply with federal regulations is advertised as $19,564, but it is “only $13,750 for large companies with over 100 employees, $18,243 for companies with 50 to 99 employees, and $34,671 for firms with fewer than 50 employees.” Competitive Enterprise Institute Policy Director Clyde Wayne Crews Jr. writes for Forbes, saying the White House Office of Management and Budget (OMB) last week “released the 2016 Draft Report to Congress on the Benefits and Costs of Federal Regulations and Agency Compliance with the Unfunded Mandates Reform Act,” which he says details what the White House considers “to be the ‘net-benefits’ of all the rules it issues every year.” Crews states that “the report’s scope is just too limited” to be informative, noting that administrations “tend to declare net-benefits of the entire regulatory enterprise on the basis of such a small handful of rules.” He adds that this is further evidence of “why reforms matter so much for the incoming Trump administration.”
What This Means For Small Businesses
Increased regulations negatively impact small businesses, requiring many to spend additional time on paperwork and compliance. In addition, diverting resources to compliance may lead to potentially higher prices, fewer jobs, or depressed wages. However, Fox News reports that “Congressional Republicans are bent on stopping or reversing the onslaught of new rules,” and former House Speaker Newt Gingrich said of President Obama, “The things he’s done this week will be turned around.” Should Congressional Republicans be successful in reversing the new rules, this would help minimize their impact on small businesses.
Additional Reading
The Washington Times, the Washington Examiner, and The Hill also report.
Note: this article is intended to keep small business owners up on the latest news. It does not necessarily represent the policy stances of NFIB.
