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Scott Garrett Leads Effort to Reduce Red Tape and Spur Small Business Growth
Scott Garrett Leads Effort to Reduce Red Tape and Spur Small Business Growth
Last week, the House passed H.R. 4078, the Red Tape Reduction and Small Business Job Creation Act. As Chairman of the Financial Services Subcommittee on Capital Markets and Government-Sponsored Enterprises, I introduced the SEC Regulatory Accountability Act, a key component of the Red Tape Reduction and Small Business Job Creation Act. Included as Title 6, this legislation subjects the Securities and Exchange Commission (SEC) to the President’s Executive Order requiring enhanced cost-benefit analysis as well as a review of existing regulations.
As our economy continues to remain in the slowest recovery since World War II and with unemployment remaining at or above 8 percent for the 41st consecutive month, I believe Washington must finally work to relieve America’s job creators from the burdens of unnecessary regulations and red tape. Since taking office, the Obama Administration has under review over 400 regulations each costing the economy at least $100 million. Washington must work to create a climate that makes it easier, not harder, for businesses to begin hiring again.
To help jump-start economic growth I believe we must make certain that new rule making and regulations outweigh the costs. Recently, the SEC Inspector General issued a report that expressed concerns about the quality of the SEC’s cost-benefit analysis. Title 6 will enhance the SEC’s existing cost-benefit analysis requirements by requiring the Commission to first clearly identify the nature of the problem that would be addressed before issuing a new regulation, and to require that cost-benefit analysis be performed by the SEC’s Chief Economist. The SEC shall also evaluate whether a proposed regulation is inconsistent, incompatible, or duplicative of other Federal regulations.
Aside from Title 6, this comprehensive piece of legislation will also streamline the federal permitting process, prevent lame-duck administrations from issuing costly new rules, and freeze major regulations that damage the economy until unemployment reaches 6% or below.
While this common-sense approach to our rule making should have been in place all along, I applaud the House for passing the Red Tape Reduction and Small Business Job Creation Act. I hope you will join me in urging the Senate to pass this bill immediately.
Sincerely,
Scott Garrett
