Small businesses are responsible for nearly two-thirds of job growth in this country. However, small business growth is limited by the cost of regulatory compliance. The annual cost per employee of complying with federal regulations is significantly higher for smaller firms than larger firms.
Read NFIB’s positions on government and regulatory reforms that affect small business:
Unnecessary regulation is a perennial cause of concern for NFIB’s members and is particularly burdensome on small businesses, which lack the resources and personnel to keep up. According to NFIB’s monthly Small Business Economic Trends survey, “unreasonable government regulations” ranks as the third largest problem. Unfortunately, the regulatory burden on small business continues has continued to grow for decades. Congress and the administration must curtail costly regulations that disproportionately affect small businesses.
NFIB-Supported Regulatory Reform Legislation
NFIB is actively lobbying Congress to pass measures that would help reduce the number of regulations and provide for greater transparency in the ones that remain.
NFIB supports the Pandemic Preparedness, Response, and Recovery Act, which would create a review commission to help Congress identify regulations that need to be changed or repealed in light of lessons learned from the COVID-19 pandemic.
NFIB supports the Unnecessary Agency Regulations Reduction Act of 2021, which would create a process to eliminate outdated, duplicative, or burdensome agency regulations by requiring the Office of Information and Regulatory Affairs to submit a list of regulations to consolidate or repeal on an annual basis.
NFIB supports the Providing Accountability through Transparency Act and the Guidance Clarity Act, both of which are meant to make government actions easier for the public to understand. The Providing Accountability through Transparency Act would require government agencies to include a 100-word plain language summary for each proposed rule. These plain language summaries would also be made publicly available online. We also support the Guidance Clarity Act, which would require federal agencies to include text in guidance documents clarifying that guidance are not laws, and do not have the force and effect of a law.
NFIB Advocacy on Regulations
NFIB is also active advocating against regulations that will harm small businesses before the White House and the various federal agencies. Here are some of the most recent comments NFIB has submitted:
On March 22, 2021, NFIB issued a letter to Treasury Secretary Janet Yellen asking, that the Department minimize the burden on small business while implementing the “beneficial ownership” provisions of the National Defense Authorization Act for Fiscal Year 2021. The “beneficial ownership” provisions of the NDAA will require small businesses to report who has an ownership interest in the business to the Financial Crimes Enforcement Network (FinCEN).
On March 23, 2021, NFIB issued a letter to Agriculture Secretary Thomas Vislak arguing that small agricultural businesses should not be treated exactly the same as large corporations in a one-size-fits-all when it comes to implementing President Biden’s climate change executive order.
On May 13, 2021, NFIB issued a letter to Vice President Kamala Harris in her capacity as Chair of the Task Force on Worker Organizing and Empowerment. NFIB urged her and the Task Force to protect the ability of small business to create jobs and respect workers who vote against unionization to the same extent as workers who vote to unionize.
On June 17, 2021, NFIB issued a letter to Katy Kale, the Acting Director of the General Services Administration, to submit to the Presidential Commission on the Supreme Court that there is no need to politicize federal courts, in particular the Supreme Court, by increasing the number of justices.
Reforming the regulatory process is one of NFIB’s top legislative priorities. Federal agencies need to do a better job of analyzing the effects of their rules on small businesses and allow more opportunities for small business input.