Friday, December 14, 2012
McCarthy: Regulatory climate stifles innovation and hinders opportunity; business startup are at the lowest level in 17 years
House Majority Whip Kevin McCarthy (R-Bakersfield) gives us his weekly view from Capitol Hill. In his own words:
"This effort, driven by a group of risk takers seeking to achieve the unthinkable, marks the very spirit of the entrepreneur. They dared to do the impossible and they succeeded. And if we are going to foster job growth in America, we must reinvigorate our nation’s entrepreneurial spirit and American innovation. We are at the lowest level of business startups in seventeen years. Labor participation is at a 30 year low with an additional 350,000 Americans giving up looking for work. Prosperity does not occur by accident nor is created by government; it is created by the hard work of the people in our community, throughout California, and across America.
"With more regulations, more litigation, and more burdens on the everyday small business owners, we must ask ourselves: are we stifling our entrepreneurial spirit?
"Our regulatory climate hinders opportunity, increases costs, and stifles innovation. More red tape and more regulations discourage our local job creators and hurt our economy. From 2009 to 2011, over 100 major regulations have been issued, costing our economy more than $46 billion annually. And earlier this year, a Small Business Administration study found regulations cost small businesses 36% more than their larger counterparts. I continue to ask local small business owners to share with me what they face on a daily basis, and time after time, they say they are tired of new and ever-changing regulatory burdens, increased paperwork burdens, and the constant threat of litigation or other legal burdens that impact them every day.
"The groundbreaking achievement made 26 years ago by the Voyager flight no doubt inspired a generation of pilots, engineers, and aerospace leaders. While many of us may not build the next spaceship, I believe it inspired a new generation of entrepreneurs. And that daring spirit is exactly what we need to continue championing today. Throughout Kern County, there are countless stories of individuals who took a risk, started a business, and are working to keep it afloat. In fact, seven out of every ten new jobs are created by these very individuals. As we continue to debate the need to simplify our tax code, reduce regulations, and end our borrowing, these actions are critical to ensure that we revitalize entrepreneurship and startups in America. Our economy needs this to happen to spur new employment, innovation, and growth. "