NTU Urges House to Pass Measure to Reduce Regulation Stranglehold on Business


NTU urges all Representatives to vote “YES” on H.R. 998, the “Searching for and Cutting Regulations that are Unnecessarily Burdensome” or the “SCRUB” Act. This legislation would establish a new panel, the Retrospective Regulatory Review Commission, empowered to inspect and repeal economically detrimental, ineffective, or obsolete business regulations.

Recent analysis pegs the Federal Code of Regulations at 178,277 pages and counting, with a record-high number of economically significant rules promulgated under the previous administration. This imposes an enormous compliance cost of almost $2 trillion on the U.S. economy; essentially a hidden tax on consumers and businesses. The overall complexity of these rules and their myriad intricacies can slow or discourage private investment in the market. Removing these roadblocks is essential to restoring economic growth.

H.R. 998 sets an attainable goal of 15 percent reduction of regulatory costs. The specifications for which regulations are rescinded are non-partisan and based on a common-sense approach. Regulations more than 15 years old are eligible to be cut if they are found to be irrelevant to current economic circumstances. Also prioritized for review would be rules that require more paperwork than is necessary to be effective, rules that heap unbearable costs on small businesses, and those regulations that could be re-drafted to maximize effectiveness and minimize costs. This legislation would also serve a valuable purpose in removing regulations that overlap, duplicate, or even directly contradict each other.

The current regulatory regime creates drag on our already fragile economy as businesses divert resources from investment and productive activities to regulatory compliance, exacting an outsized toll on small businesses in particular. Working to reduce the regulatory hurdles that obstruct innovation and restrict the enormous potential of U.S. enterprise could help clear the way for more robust investment and job growth across many sectors of the economy.

Roll call votes on H.R. 998 will be included in our annual Rating of Congress and a “YES” vote will be considered the pro-taxpayer position.

If you have any questions, please contact NTU Federal Affairs Manager Nan Swift at (703) 683-5700