One-size-fits-all gov't regulations disadvantage small, local businesses
National Federation of Independent Business Josh McLeod discusses how lack of compliance with the Regulatory Flexibility Act (RFA) by gov't agencies leads to numerous rigid, overbroad regulations that don't take into account the unique needs of local merchants.
Agencies are deliberately ignoring a law that protects small businesses, leading to massive one-size-fits-all mandates that hurt Main Street job creators. That’s the conclusion of a new report from the National Federation of Independent Business, which reviewed agency compliance with the 1980 Regulatory Flexibility Act, or RFA. Violations are frequent, leaving the law little more than a paper tiger and small businesses at the mercy of regulators gone wild.Congress should strengthen the law immediately, proving that our lawmakers actually stand with small business.
This law was supposed to protect small businesses in several ways. First, it requires agencies to analyze a regulation’s effects on small businesses, both at its proposal and final promulgation. Second, it requires agencies to consider ways to ease compliance for small businesses, including alternatives and exemptions. In the 1990s, a third major protection was added, requiring some agencies to solicit direct input from small businesses, through formal panels, before establishing rules. The whole point of the law was to stop the most burdensome federal mandates, not least by forcing agencies to publicize the damage they would do.
Members of Congress across the political spectrum have strong reasons to support these reforms. No representative or senator wants to be tarred as hurting small businesses, and in fact, virtually every current member of?Congress?is on record supporting them. Supporting small businesses when the cameras are rolling or during a campaign is one thing. Proving it through legislative action is another. They can demonstrate their support for small businesses by strengthening the Regulatory Flexibility Act, making it the bulwark for Main Street that it was always meant to be.”
Read the full op-ed online here.
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