News from Southwest Metro Chamber of Commerce

By Doug Loon

VP Regional Affairs, U.S. Chamber of Commerce

Now that the 2010 elections are behind us and our newly elected officials begin to set priorities, many Americans will continue to wonder "where's the recovery?" That's the question millions of unemployed Americans continue to ask. Unemployment still hovers near 10% nationally and 7% here in Minnesota. The economy remains sluggish and economic growth uncertain.

Clearly, the traditional Washington prescriptions - more spending and more government regulations - haven't worked. It's time to change direction and re-embrace the free enterprise principles that made America the most prosperous nation in history. One such principle that needs urgent action is that of regulatory reform and relief.

Today, a regulatory hurricane threatens our economy and its ability to create and grow jobs. This regulatory hurricane has been building up strength for some time and businesses of all sizes know its brute force. Recently we've seen a dramatic acceleration of major regulations and mandates, from the health care and financial reform laws to some of the most activist agendas ever undertaken by federal agencies. Businesses are hunkering down in response, hoping to wait out the storm until the economy becomes more certain. Without certainty, businesses find it difficult to make the plans and investments needed to grow and create jobs.

The business community has long recognized the need for sensible regulations to ensure workplace safety, guarantee worker rights, and protect public health. While many regulations have a positive impact, many others are outdated, ineffective, overly complicated, and counterproductive. The Small Business Administration puts the total price tag of complying with federal regulations at $1.75 trillion in 2008. That amounts to $15,500 for each U.S. household.

It's only going to get worse. The EPA is advancing 29 proposed major rules and 173 others-an unprecedented level of regulatory action. The financial regulatory reform bill creates nearly 500 regulatory rulemakings, 60 studies, and 93 reports. And the massive health care law creates 183 new agencies, commissions, panels, and other bodies.

Perhaps the best example of regulatory over-reach is Section 9006 of the new health care reform law that vastly expands the requirement for businesses to file 1099 information returns. Unless this section is repealed, businesses starting in 2012 will be subjected to the folly of data collection and information filing on virtually all non-credit card business-to-business transactions they make aggregating $600 or more in a year, at a time when many can least afford it.

So what's to be done to stem this rising tide? First, Congress needs to stop approving bills that pass the buck to the regulators.

Second, Congress must exercise vigorous oversight of the sweeping bills that it passes.

Third, the federal agencies must do a much better job of complying with laws designed to ensure the use of quality data, cost-benefit analyses, and the scrupulous review of regulations.

Finally, the American people must speak out against the regulatory hurricane that is overwhelming our economy and squelching job creation.

At stake is the health of our economy, our standard of living, our global competitiveness, and the free enterprise system that is at the heart of the American Dream.