CQ TODAY ONLINE NEWS
Sept. 9, 2011 – 10:13 p.m.
House Begins Bid to Roll Back Rules
By David Harrison, CQ Staff
House Republicans this week will start their long-planned assault on the Obama administration’s regulatory policies, emphasizing their view that lowering the cost of doing business will boost the economy and create jobs.
Upcoming debates over bills that would rein in the National Labor Relations Board and the EPA are likely to turn heated in the next several weeks, and may bring a rapid end to a tone of civility that GOP leaders sounded last week after their return from the August break.
The anti-regulatory initiative, which has been months in the making, is a centerpiece of the GOP’s jobs proposal. As such, it stands in sharp contrast to President Obama’s call for expanded infrastructure spending and a further reduction in Social Security payroll taxes.
That contrast underscores philosophical differences that threaten to bog down Congress’ response to a stubbornly high jobless rate.
The first test of the power of this regulatory initiative will come in a bill to limit the authority of the National Labor Relations Board, which has been in the spotlight since filing a complaint against the Boeing Co. claiming the manufacturer inappropriately opened a factory in South Carolina to retaliate against unions in Washington state.
The bill (
A second test will come the week of Sept. 19, when the House takes up a bill (
Regulatory actions related to coal ash, greenhouse gases, farm dust and another NLRB rule are on deck for later this year. The House also will consider broader proposals to give Congress additional oversight of federal rulemaking.
Months in Coming
The administration’s environmental and labor rule have long been in the sights of the Republican majority, which contends that the regulations have created a climate of uncertainty that makes small companies reluctant to invest and hire new workers.
Earlier this year, House GOP leaders asked committee chairmen to identify federal regulations that they believe to be stalling business expansion. The resulting list was whittled down to about 10 rules that Republicans consider the most onerous. Majority Leader
House Republicans, however, are reluctant to estimate the number of jobs a regulatory rollback might yield. “This town has gotten into trouble — the president certainly has as well — promising that the stimulus plan would hold down unemployment to 8 percent,” Cantor said.
Democrats say anti-regulatory measures are not particularly effective ways to create jobs and are unwise if they weaken safety protections for workers and consumers.
House Begins Bid to Roll Back Rules
Obama has embarked on his own regulatory overhaul and directed government agencies to look for ways to weed out unnecessary and cumbersome rules. Earlier this month, the White House delayed the implementation of a new ozone standard.
In anticipation of the floor fights, Republican leaders have sought to give voice to the complaints of company executives who say their enterprises have been harmed by excessive rules.
Speaker
“There are hundreds and hundreds of regulations that are going to cost hundreds of billions of dollars,” Boehner said last week. “It raises the cost of doing business in the United States, it makes it more difficult for employers to expand their business and in many cases it forces employers to relocate their facilities overseas.”
Education and the Workforce Chairman
Economic Fallout
The sentiment of many Republicans was echoed by
But it is unclear that his position is widely shared among economists or even small-business operators.
Many economists say reductions in federal spending will in time lead to job losses among federal, state and local workers, eliminate government contracting jobs and otherwise lead to a drag on growth.
And, in surveys conducted by the National Federation of Independent Business, small-business owners routinely cite weak sales as the principal reason they are reluctant to hire. Taxes and government red tape are less prominent concerns for smaller companies, suggesting that what is holding back the economy is a lack of aggregate demand rather than excessive regulation.
Still, a Small Business Administration report last year found that regulations cost companies $1.75 trillion in 2008. Many of those costs are hidden, translating into higher prices or lower profits. While business owners may have detailed knowledge of their tax-related expenses, they may be less aware of the money they spend complying with federal rules. Small businesses pay a disproportionate share of those costs compared to larger businesses, according to the report.
Wrong Approach
Getting rid of regulations is no panacea either, said Heather Boushey, senior economist at the left-leaning Center for American Progress. “Why do we have 14 million people in America unemployed today? A housing bubble was allowed to develop, and a big piece of why the housing bubble was allowed to develop so big was financial deregulation,” she said.
House Begins Bid to Roll Back Rules
Democrats in Congress say that while there is good reason to do away with duplicative or unnecessary rules, regulatory agencies play an important role in protecting consumers and workers.
“One of the things that bothers me about the Republican majority in the House here is they believe the only way you can fix this economy is by lowering the standard of living and the quality of life for American workers,” said
Minority Leader