Excessive Government Regulations Continue to Stifle Job Creation

WASHINGTON, D.C. – The U.S. House of Representatives continued its effort to foster job creation Thursday with passage of the first in a series of bills designed to remove burdensome federal regulations that prevent job creation and hinder economic growth.  The first bill in this series, the Protecting Jobs from Government Interference Act (H.R. 2587) would prevent the National Labor Relations Board (NLRB) from ordering an employer to relocate, shut down, or transfer a business relating to a labor dispute. Congressman Todd Platts (PA-19) voted in favor of H.R. 2587, which passed the House by a vote of 238-186.

On April 20, the NLRB filed a complaint against The Boeing Company for opening a new facility in South Carolina and demanded the work be transferred to the state of Washington, where Boeing has operated for many years.  H.R. 2587 aims to remove the NLRB’s ability to dictate where a private business can establish its workforce – thus removing a chilling effect on job creators across the country.  Importantly, Boeing’s expansion created new jobs in South Carolina, while not costing jobs back in Washington State.

H.R. 2587 is the latest step by the U.S. House of Representatives to reduce the burden that federal regulations put on small businesses and families. The House approved a resolution in February (H. Res. 72), supported by Congressman Platts, to review federal rules and regulations that may unfairly harm the ability to create jobs and grow the economy.  The Oversight and Government Reform Committee, of which Congressman Platts is a member, also solicited the feedback of job creators nationwide to learn about the most burdensome federal regulations and the barriers they put on job creation. 

"Small businesses throughout the 19th Congressional District have made it clear to me that excessive regulations are one of the main barriers to growing their businesses and creating new jobs,” said Congressman Platts. “Such government red tape takes money out of the hands of America's job creators and families. Congress needs to exercise stronger oversight over the federal regulatory process.”

Following passage of H.R. 2587, the House will consider further legislation to repeal burdensome regulations and reform the federal regulatory process.  The Obama Administration has identified 219 planned new regulations - seven of which could have a combined economic cost of more than $100 billion, according to the White House.  A September 2010 study by the U.S. Small Business Administration (SBA) found that federal regulations cost the average American business $8,086 per employee in 2008 – while the burden for companies with fewer than 20 employees reached $10,585 per employee.  These costs are passed on to the consumer or workers in the form of lower wages or shortage of jobs.

  The focus on federal regulations is part of ongoing efforts in the U.S. House to pursue pro-growth policies that create a better environment for job creation in America.  This year, the House has passed legislation to ease the tax burden on small businesses, harness our ability to develop new sources of energy, and reduce our unsustainable debt burden. At least 10 such House-passed jobs bills are awaiting action in the Senate.  Congressman Platts supported those legislative efforts, and as Chairman of the Subcommittee on Government Organization, Efficiency and Financial Management, has pushed for additional reforms by conducting oversight on critical issues such as unnecessary duplication in federal government programs, and improper payments made by the federal government – which are estimated to be more than $125 billion this year alone.