New Small Businesses Face $83,019.23 Regulatory Cost in First Year Alone
By Gloria Taylor
The National Association of Small Business released the results of their Small Business Regulations Survey this week. The survey confirms that out of control federal regulation has crippled the ability of small business to create jobs and contribute to economic growth.
The report confirms the unbelievable regulatory burden leveled on small businesses by the federal government. As you might guess, the tax code and Obamacare get the prize for causing the most pain. The overtime, fiduciary, and Water of the United States rules also make the cut. When broken down by agency the Internal Revenue Service (IRS), Department of Labor (DOL), and Environmental Protection Agency (EPA) are cited as “the most difficult to work with” in terms of compliance.
Due to all federal agency regulations, nearly one-third of businesses spend over 80 hours drowning in compliance with an average cost of $12,000. For most small businesses the owner becomes the “number ones regulatory expert” dealing with compliance paperwork and interrupting the rules rather than growing their company. Business owners admit they have held off on hiring and investment, and entrepreneurs hesitate to start a business given regulatory startup cost averaging over $83,000 in just the first year alone.
Government regulation is more than a talking point. Federal regulators with a penchant to amass power and stick the government’s nose in business it ought to leave to the market, has undermined job creation, kept entrepreneurs from entering the market, and slowed investment.
The 115th House of Representatives has already begun to address government regulation by passing the Regulations from the Executive in Need of Scrutiny Act of 2017 (H.R. 26) that would increase accountability for and transparency in the federal regulatory process by requiring Congress to approve all new major regulations. The Senate should act quickly on this bill and send it to President Trump’s desk for signature. Small business owners know on a profound personal level that policy has consequences. It’s time for the federal government to listen and provide regulatory relief to America’s job creators.