Mr. Speaker, I ask unanimous consent that all Members have 5 legislative days to revise and extend their remarks and insert extraneous material on the topic of this Special Order. Mr. Speaker, I am here tonight with my colleagues to…
Mr. Speaker, I ask unanimous consent that all Members have 5 legislative days to revise and extend their remarks and insert extraneous material on the topic of this Special Order.
Mr. Speaker, I am here tonight with my colleagues to discuss the importance of small business in America.
Small businesses are our job creators in America, and we here in Congress must do everything that we can to help them to be doing exactly that in creating jobs in our country.
We're here to talk about these issues. We're here to talk about the burdens that are on small business that remain intact that we can help with. We must do everything we can because right now our small business hands are tied. They are telling us over and over again that regulations and the threat of taxation uncertainty continue to hold them back from creating jobs, innovating, and investing in their own companies.
With that, I yield to my colleague from Washington.
I will just echo my colleague's remarks by saying that, according to the NFIB, compliance with environmental regulations costs small businesses four times more than larger firms. Larger firms do have the ability and employees in place to deal with these issues. Our small businesses simply cannot afford to do business that way.
With that, I yield to my colleague from California.
I thank my colleague from California. Your perspective alone, as a small business owner and as a farmer, really gives us that strong idea of what we're really facing.
Many of us here in Washington now are and have been small business owners, and we understand the burdens that we are having to undertake and that the rest of America is dealing
with. In fact, Mr. Speaker, I'm going to just talk a little bit about some statistics and poll data.
According to a recent Gallup Poll, small business owners in the United States say complying with government regulations is the most important problem facing them today, followed by consumer confidence in the economy and a lack of consumer demand. Small business firms bear a regulatory cost of $10,585 per employee just to deal with the regulations, which is 36 percent higher, there again, than larger businesses. Small business is what drives our economy, yet it is what is continuously targeted, and we must act on it with the bill that we will pass tomorrow, H.R. 527.
I spoke a little bit about the excessive costs of dealing with environmental regulations. According to the Small Business Administration, regulations cost the American economy $1.7 trillion annually, which is an enormous cost. You can see by our unemployment rate why we continue in this. Until we are able to cut the excessive, overbearing regulations that are facing our businesses, we will not turn this economy around. That is why we must act now. That is why, of the many bills we have passed over to the Senate, we repeatedly ask for a vote so that we can get started. We could do this tomorrow if these bills were voted on.
One last bit of information before I introduce my next colleague.
Of the administration's new regulations--``new'' regulations--200 are expected to cost over $100 million each. Seven of those new regulations will cost the economy more than $1 billion each. We cannot continue on this path.
With that, I yield to my colleague from Illinois.
I thank my colleague from Illinois for that very important information.
Again, as a small business owner, this information is vital to the solutions that we're coming up with here in Washington. We're not just Members of Congress who don't have the experience out there, and we aren't just listening to the usual Washington bureaucrats.
We are actually small business owners who deal with these real-life experiences and understand what works and what doesn't, and this simply is not working.
Mr. Speaker, in my district, where the unemployment rate hovers at about 10.3 percent, I am hearing numerous stories highlighting how small businesses are ``hanging on by a thread,'' and I say that in quotes. ``Hanging on by a thread'' is what I hear. ``Over-regulation is killing us,'' is another quote I hear over and over and over again.
They feel that they are being punished by Washington. They, years ago, felt that their competitors were the ones that they were working against and trying to compete with for a better product. Now they feel that they are working against the Federal Government and the Federal Government is working against them. The Federal Government has become their enemy.
One of the local small businesses in my district is Kivett's Incorporated in Clinton, North Carolina, owned and operated by Mr. Jerol and Telia Kivett. They are wonderful people, and I met them when I was actually running for
office. Why? Because I needed to go in. They called for a meeting with me because they were so concerned with where our country was going and what was happening to their business.
They were not people who had been politically active, they were not people who had ever sat down with a Member of Congress or a want-to-be Member of Congress, but they felt trapped and continue to feel trapped by the government regulations and all of the uncertainty, including the President's health care bill, which they know will harm them greatly.
Kivett's Incorporated, is the largest family-owned and operated church pew manufacturer and pew refinisher in the United States. In addition, they build and refurbish other church furniture and fixtures, such as steeples and stained glass windows and provide a full range of services from delivery to installation.
This is a jewel in my district. So many are sending these jobs over to China, and yet the Kivetts have maintained their business. Their business was started by Jerol's father, I believe, back in the fifties. They have spent their lives and dedicated their lives to their business, and they are feeling that it is being pulled out from underneath them.
Mr. Kivett's company had 160 employees in 2005, and they are now down to 52--from 160 to 52. Their volume of business is down 60 percent. Their business has not made a profit in the last 3 years. That is significant. They have not increased the prices on their products either since 2005.
This has been due to the fear of losing more business, even though their costs, their costs for products, have escalated; but they have tried to maintain their business by keeping their prices at the same level. At one point they were averaging one church, church furniture for one church every day, and are now down to approximately two per week.
Mr. Speaker, how are they going to be able to keep their doors open and keep those 52 remaining employees working? Churches depend on charitable giving, and they are having a hard time finding a way to meet their operating budget, which leaves any kind of future planning completely out of the realm of possibility.
I spoke a moment ago about the health care law, the uncertainty it's creating for small businesses. Owners make it harder for us to determine--and this is coming straight from Mr. Kivett--it is making it harder for us to determine what our costs are at a time when we are struggling to meet the most basic cost of running our business.
As Mr. Kivett puts it, we are just trying to maintain and praying for the government to stop attempting to regulate small businesses and ``get out of the way.'' That is another quote I hear over and over and over again: ``Get out of the way.''
That's some of the gloom and doom that my business owners in my district are faced with. As you heard tonight from some of my colleagues, there is a light at the end of the tunnel. Mr. Schilling from Illinois showed you the card, the number of bills, again, that we have passed in the House with bipartisan support to create jobs.
We keep hearing how America wants jobs. We keep hearing about the 99. The 99 percent is sitting on the floor of the majority leader in the Senate, because if those bills were passed and sent to the President to be signed into law, we could have jobs created in this country. We need to decrease the unemployment rate.
We can talk about cutting spending all day long, and we are all about that, but until we get people back to work, we're not going to turn this economy around. Again, there is a light at the end of the tunnel, and you have heard us speak tonight about H.R. 527, which we will be voting on tomorrow.
We simply cannot continue the one-size-fits-all regulations produced by this administration which hinder our small businesses. This bill will help alleviate needless burdens. Economic recovery begins with our small businesses, but this will not happen unless we rein in the mass of regulations coming from right here in Washington.
The Regulatory Flexibility Act of 1980, as amended by the Small Business Regulatory Enforcement Fairness Act, requires Federal agencies to assess the economic impact of their regulations on small business. Imagine that, imagine having to run an economic impact study to find out how much damage they will be doing to small businesses if these regulations are put in place.
If the impact is significant, they must consider alternatives that are less burdensome. However, the agencies have used loopholes to get around this statute, and that is why it is so important that we pass H.R. 527, the Regulatory Flexibility Improvements Act of 2011, which would remove the loopholes and strengthen the flexibility act by increasing the power of the office of the chief counsel for advocacy to enforce the RFA, ensuring complete analysis of potential impacts on small business and forcing agencies to perform better periodic review of rules.
Regulations often impose unnecessary burdens on small business. You've heard that over and over and over again tonight, that impede their ability to create jobs. Agencies frequently fail to consider appropriate alternatives that allow agencies to achieve their regulatory objectives without imposing burdens on America's job creators, our small business owners.
The Regulatory Flexibility Improvements Act, H.R. 527, provides urgently needed help to small businesses facing an onslaught of Federal regulations. It has been 15 years since Congress last updated the Regulatory Flexibility Act of 1980. During that time, we have seen that there are weaknesses in the regulatory process that Federal agencies have exploited to the detriment of small businesses and job creators.
This bill ensures Federal agencies can no longer ignore the RFA. Job creators are the key to economic recovery and the small businesses are America's job creators. Over-regulation requires the diversion of scarce capital from job creation to regulatory compliance.
I said earlier, Mr. Speaker, North Carolina's unemployment rate is now 10.4 percent. This is not a statistic; this is a catastrophe.
Mr. Speaker, thank you so much for this opportunity tonight.
I yield to my colleague from Iowa.
I thank the gentleman from Iowa.
Mr. Speaker, I just want to take the opportunity to say in closing that, as a small business owner with my husband back in Dunn, North Carolina, with our surgical practice, that we have faced exactly what my colleague is talking about, these excessive regulations that have continued through the years.
We are at a point now where we are seeing our fellow colleagues back home with medical practices closing their doors, being bought out by hospitals because they just cannot and know they will not be able to adhere to the mandates coming forward with the health care bill and all of the uncertainty with the doc fix, SGR, all of those wonderful things.
Mr. Speaker, we must act now. We can turn this economy around by acting on these regulations, by passing these regulatory decreases for our businesses so that, there again, our job creators can do what they do best, reinvesting in this country and being the job creators that they are.
With that, I yield back the balance of my time.