Red Tape Reduction And Small Business Job Creation Act
Mr. Chairman, I yield myself such time as I may consume. Mr. Chairman, America's economic recovery remains sluggish, with the national unemployment rate above 8 percent for over 40 months. The President promised that his $800 billion…
Mr. Chairman, I yield myself such time as I may consume.
Mr. Chairman, America's economic recovery remains sluggish, with the national unemployment rate above 8 percent for over 40 months. The President promised that his $800 billion spending bill would keep unemployment under 8 percent. Instead, the spending bill only added to the deficit, which has doubled under this administration.
More than 12 million Americans are out of work, 700,000 more than when President Obama took office; and the median income of American families has dropped too.
The President's economic policies have failed, and his regulatory policies have made the economy worse. A recent Gallup poll found that among the 85 percent of U.S. small businesses that are not hiring, nearly half cited ``being worried about new government regulations'' as the reason.
President Obama has turned America into a regulation Nation. A Heritage Foundation study found that in his first 3 years in office, President Obama implemented 106 major rules that imposed $46 billion in additional annual regulatory costs on the private sector. That's a new record.
The President promised in his 2011 State of the Union address to fix ``rules that put an unnecessary burden on businesses,'' but he has gone in the opposite direction. We need to encourage businesses to expand, not tie them up with red tape.
Today, Congress continues to fight the constricting red tape that comes from Washington by offering commonsense solutions that deserve bipartisan support. And that's what we do today.
Members of the Judiciary Committee introduced three of the titles in the Red Tape Reduction and Small Business Job Creation Act. Mr. Griffin's Regulatory Freeze for Jobs Act gives small businesses a much- needed break from new regulations that cost the economy $100 million or more until the unemployment rate stabilizes at 6 percent.
The Freeze Act is narrowly tailored to stop unnecessary economically significant regulations. It contains reasonable exceptions, such as health and safety, criminal or civil rights laws, trade agreements, and national security. The Freeze Act gives job creators confidence about future regulatory conditions, which will encourage them to make the investments that will jump-start our economy.
The RAPID Act, introduced by the gentleman from Florida (Mr. Ross), helps to create jobs as it streamlines the Federal environmental review and permitting process. It draws upon established definitions and concepts from existing regulations and even from the administration's own recommendations.
Employers and investors can't move forward without necessary permits and without confidence in the process. The RAPID Act establishes reasonable, predictable deadlines for agencies to complete the permit review process and for lawsuits to be filed afterwards.
The Sunshine for Regulatory Decrees and Settlements Act, introduced by the gentleman from Arizona (Mr. Quayle), ends the abuse of consent decrees and settlements to require more regulations.
For many years, regulatory advocates and agencies have used consent decrees and settlements to establish new rules in secrecy, outside the regular rule-making procedures that provide for transparency and public participation. The ``sue and settle'' approach has enabled agencies to impose higher costs and avoid accountability since they can claim ``the court made us do it.''
Mr. Quayle's legislation makes sure that the public and those affected by regulations have a say in these decrees and settlements. It also requires greater judicial scrutiny and helps to prevent an outgoing administration from unfairly setting its successor's agenda through consent decrees. These and all of the titles of the Red Tape Reduction and Small Business Job Creation Act provide needed relief to small businesses.
Economic growth depends on job creators, not Federal regulators. This legislation frees up businesses to spend more, invest more, and produce more in order to create more jobs for American workers. I urge my colleagues to support this commonsense bill.
Mr. Chairman, I reserve the balance of my time.
I have no idea whether we have more or fewer regulations than other countries. I do know this: we have far more regulations today than we had 3 years ago. And I also know that the Obama administration has set a new record in the number of expensive, unnecessary regulations that it has suggested and implemented.
I thank the gentleman for yielding.
Mr. Chairman, I yield 4 minutes to the gentleman from North Carolina (Mr. Coble), a senior member of the Judiciary Committee and the chairman of the Courts, Commercial and Administrative Law Subcommittee.
If the gentleman would yield to me, I would be happy to try to respond.
Mr. Chairman, I yield myself 30 seconds to respond to a question that the gentleman from Michigan posed a few minutes ago.
Mr. Chairman, I'd like to include for the Record an article from earlier this year that appeared in The Economist magazine. This is a magazine that is one of the oldest, most respected sources of news and analysis, and it is favorably disposed toward the Obama administration. But it published an article detailing how the Obama administration systematically manipulates the cost-benefit analysis in agency rulemaking.
This manipulation deliberately inflates benefits and minimizes the cost, the article says. The Economist goes so far as to call the administration's cost-benefit analysis ``highly suspect'' and ``subject to the whims of the people in power.''
[From the Economist, Feb. 18, 2012]
Measuring the Impact of Regulation
The rule of more--Rule-making is being made to look more beneficial
under Barack Obama
Washington, DC: In December Barack Obama trumpeted a new
standard for mercury emissions from power plants. The rule,
he boasted, would prevent thousands of premature deaths,
heart attacks and asthma cases. The Environmental Protection
Agency (EPA) reckoned these benefits were worth up to $90
billion a year, far above their $10 billion-a-year cost. Mr.
Obama took a swipe at past administrations for not
implementing this ``common-sense, cost-effective standard''.
A casual listener would have assumed that all these
benefits came from reduced mercury. In fact, reduced mercury
explained none of the purported future reduction in deaths,
heart attacks and asthma, and less than 0.01% of the monetary
benefits. Instead, almost all the benefits came from
concomitant reductions in a pollutant that was not the
principal target of the rule: namely, fine particles.
The minutiae of how regulators calculate benefits may seem
arcane, but matters a lot. When businesses complain that Mr.
Obama has burdened them with costly new rules, his advisers
respond that those costs are more than justified by even
higher benefits. His Office of Information and Regulatory
Affairs (OIRA), which vets the red tape spewing out of the
federal apparatus, reckons the ``net benefit'' of the rules
passed in 2009-10 is greater than in the first two years of
the administrations of either George Bush junior or Bill
Clinton.
But those calculations have been criticised for resting on
assumptions that yield higher benefits and lower costs. One
of these assumptions is the generous use of ancillary
benefits, or ``co-benefits'', such as reductions in fine
particles as a result of a rule targeting mercury.
Mr. Obama's advisers note that co-benefits have long been
included in regulatory cost-benefit analysis. The logic is
sound. For instance, someone may cycle to work principally to
save money on fuel, parking or bus fares, but also to get
more exercise. Both sorts of benefit should be counted.
The controversy arises from the overwhelming role that co-
benefits play in assessing Mr. Obama's rule-making. Fully
two-thirds of the benefits of economically significant final
rules reviewed by OIRA in 2010 were thanks to reductions in
fine particles brought about by regulations that were
actually aimed at something else, according to Susan Dudley
of George Washington University, who served in OIRA under
George Bush (see chart). That is double the share of co-
benefits reported in Mr. Bush's last year in office in 2008.
If reducing fine particles is so beneficial, it would
surely be more transparent and efficient to target them
directly. As it happens, federal standards for fine-particle
concentrations already exist. But the EPA routinely claims
additional benefits from reducing those concentrations well
below levels the current law considers safe. That is dubious:
a lack of data makes it much harder to know the effects of
such low concentrations.
Another criticism of the Obama administration's approach is
its heavy reliance on ``private benefits''. Economists
typically justify regulation when private market
participants, such as buyers and sellers of electricity,
generate costs--such as pollution--
that the rest of society has to bear. But fuel and energy-
efficiency regulations are now being justified not by such
social benefits, but by private benefits like reduced
spending on fuel and electricity.
Private benefits have long been used in cost-benefit
analysis but Ms. Dudley's data show that, like co-benefits,
their importance has grown dramatically under Mr. Obama. Ted
Gayer of the Brookings Institution notes that private
benefits such as reduced fuel consumption and shorter
refuelling times account for 90% of the $388 billion in
lifetime benefits claimed for last year's new fuel-economy
standards for cars and light trucks. They also account for
92% and 70% of the benefits of new energy-efficiency
standards for washing machines and refrigerators
respectively.
The values placed on such private benefits are highly
suspect. If consumers were really better off with more
efficient cars or appliances, they would buy them without a
prod from government. The fact that they don't means they put
little value on money saved in the future, or simply prefer
other features more. Mr. Obama's OIRA notes that a growing
body of research argues that consumers don't always make
rational choices; Mr. Gayer counters that regulators do not
make appropriate use of that research in their calculations.
Under Mr. Obama, rule-makers' assumptions not only enhance
the benefits of rules but also reduce the costs. John Graham
of Indiana University, who ran OIRA under Mr. Bush, cites the
new fuel-economy standards as an example. They assume that
electric cars have no carbon emissions, although the
electricity they use probably came from coal. They also
assume less of a ``rebound effect''--the tendency of people
to drive more when their cars get better mileage--than was
the case under Mr. Bush.
Mr. Bush's administration was sometimes accused of the
opposite bias: understating benefits and overstating costs.
At one point his EPA considered assigning a lower value to
reducing the risk of death for elderly people since they had
fewer years left to live; it eventually backed down. Mr.
Obama's EPA has considered raising the value of cutting the
risk of death by cancer on the ground that it is a more
horrifying way to die than others.
More consistent cost-benefit analysis would reduce such
controversies. Michael Greenstone of the Hamilton Project, a
liberal-leaning research group, thinks that could be done
through the creation of a non-partisan congressional
oversight body using the best evidence available to vet
regulations, much as the Congressional Budget Office vets
fiscal policy. It would also re-evaluate old regulations to
see if the original analysis behind them was still valid.
Rule-making would still require judgment, but it would be
less subject to the whims of the people in power.
Mr. Chairman, I yield 4 minutes to the gentleman from Arkansas (Mr. Griffin), a member of the Judiciary Committee and the sponsor of the legislation we consider today.
Mr. Chairman, I yield 4 minutes to the gentleman from Florida (Mr. Ross), who is a member of the Judiciary Committee and a sponsor of the RAPID Act, which is a part of this legislation.
Mr. Chairman, I yield 4 minutes to the gentleman from Arizona (Mr. Quayle), a member of the Judiciary Committee and the sponsor of the Sunshine for Regulatory Decrees and Settlements Act, which is a part of this legislation.
Mr. Chairman, I am happy to yield 1 minute to the gentleman from Virginia (Mr. Cantor), the distinguished majority leader.
Mr. Chairman, I yield 1 minute to the gentleman from Nevada (Mr. Amodei), who is a member of the Judiciary Committee.
Mr. Chairman, I yield 1\1/2\ minutes to the gentleman from New York (Mr. Reed), who is a member of the Ways and Means Committee.
Mr. Chairman, I yield 3 minutes to the gentleman from New Jersey (Mr. Garrett), who is the vice chairman of the Budget Committee.
Mr. Chairman, I yield 2 minutes to the gentleman from Arizona (Mr. Flake), who is a member of the Appropriations Committee.