U.S House Votes to Cut Red Tape

Legislation would put a moratorium on new federal regulations until the unemployment rate gets down to 6%.

July 30, 2012

WASHINGTON - An attempt to rein in unemployment took place in the U.S. House of Representatives last week with passage of a bill designed to keep the government from adding more red tape to an already struggling economy.

H.R. 4078, the Red Tape Reduction and Small Business Job Creation Act, is the latest in a series of House-passed jobs bills aimed at addressing overregulation, according to House Speaker John Boehner??s (R-OH) website.

"Having run a small business, I know how costly and time-consuming all of Washington??s various processes, permits and procedures can be, especially in the middle of tough times. Jumping through all these hoops just to get a business up and running is the kind of hard work the president dismisses, and his policies make even harder. Listening to small business owners, Republicans made a Pledge to America to rein in Washington??s red tape factory, and today we??ve taken another step in keeping that pledge," Boehner said.

Specifically, the bill would put a hold on new federal regulations that would cost $100 million or more until unemployment rates have fallen to 6% or less. The bill does make exceptions for federal rules necessary for national security, trade agreements, enforcement of criminal and civil rights laws and imminent threats to health or safety. It also allows the president to seek congressional approval for other regulations he/she believes are critical.

The bill would also prevent what??s known as "midnight regulations," a practice where outgoing presidents issue new rules and regulations between Election Day in November and Inauguration Day in January.

"With America??s unemployment rate above 8% for 41 straight months and counting, even President Obama has admitted that 'unnecessary or too costly?? regulations are 'placing unreasonable burdens on business [and having] a chilling effect on growth and jobs.?? He??s identified the problem, and by passing the Red Tape Reduction and Small Business Job Creation Act, the House has provided the solution," said Rep. Tim Griffin (R-AR), lead sponsor of the bill.

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