Sen. Ron Johnson's (R-WI) first act when he became a U.S. Senator was to introduce legislation that would reduce the effects of excessive regulations. His bill, S.1438, would prohibit any federal agency from enacting significant regulations until the Bureau of Labor Statistics (BLS) reports that the unemployment level has dropped to 7.7%.
"Significant" is defined as a regulation that will:
- "have an annual effect on the economy of $100 million or more or adversely affect the economy, productivity, competition, jobs, the environment, public health or safety, small entities, or state, local, or tribal governments or communities;
- "create a serious inconsistency or otherwise interfere with another agency's action;
- "materially alter the budgetary impact of entitlements, grants, user fees, or loan programs or the rights and obligations of recipients thereof; or
- "raise novel legal or policy issues."
The law would also allow the President to waive the rule on the basis of national security or a national emergency.
It costs businesses $1.75 trillion a year to comply with regulations, and in just the first 26 months of President Obama's term, his administration added $38 billion in new costs and add an average of 84 "significant" regulations each year, more than any other comparable period.
This is exactly why regulations need to be curbed. With businesses struggling to comply with onerous regulations, it makes hiring difficult. As Sen. Ron Johnson says on his website:
"Many regulations have been helpful. No one wants to get rid of all regulations. But with an economy stuck in neutral, it's time to give job creators a chance to catch up with the myriad regulations we already have."
One-in-five small businesses say that regulations are their biggest obstacle to hiring. It's time to lessen the burden on job creators and get our economy moving again. Sen. Ron Johnson's regulation moratorium bill is a good first step.