Jobs, Economy and Regulation
In 2008, our country faced a financial crisis that was second only to the Great Depression. Many Americans saw their hours and wages cut back, or worse lost their jobs.
Ever since the events of that time, our economy and the jobs our country depends on, have been slow to recover. We must do more to encourage our small and large businesses alike to grow and thrive. By selling more of what we make and grow in America around the globe, we can boost manufacturing, wages, and jobs, here at home.
Reining-in Rules and Regulations
As a member of the Senate Small Business and Entrepreneurship Committee, I have been working to build pro-growth policies and a regulatory system that encourages innovation, job growth, and keeps our small businesses in mind. Washington’s current regulatory approach and our complex tax code puts American businesses and jobs at a disadvantage in the global economy.
Small businesses are the backbone of our communities, and in Iowa they make up over 99 percent of all employers in the state. I hear all too often from Iowa businesses, farmers, and manufacturers that feel they are hamstrung from costly rules and regulations. Many have told me that they feel the government is out to get them, rather than work with them to find an appropriate balance.
Simply put, the more time our nation’s innovators and employers spend trying to figure out how to comply with regulations, the less time they have to grow their business and create. Our job creators do not view these regulations in a vacuum and neither should the federal government. It’s not just one regulation these job creators have to comply with – it’s multiple. The cumulative burden of all these regulations is literally slowing down business. Some estimates have concluded that complying with federal regulations costs Americans about $2 trillion dollars in lost economic growth annually.
I am committed to rolling back this red tape, and will continue to work on smart reforms to streamline our regulatory system so our businesses have the certainty, confidence, and flexibly they need to invest and expand.
In April of 2016, I introduced the Prove It Act to increase transparency within the federal rulemaking process, especially when there is a disagreement between agencies over the economic impact of a rule on small businesses. By encouraging federal agencies to carefully consider the impact a rule may have on small businesses, it brings us a step closer to preventing harmful rules while also incentivizing better rulemaking to free up our job creators.
In addition, I have supported in the Senate:
- S. 226 Regulations From the Executive in Need of Scrutiny Act of 2015 (REINS Act)
- S. 1683 Searching for and Cutting Regulations that are Unnecessarily Burdensome Act of 2015 (SCRUB Act)
- S. 2006 Regulatory Accountability Act of 2015
- S. 1536 Small Business Regulatory Flexibility Improvements Act of 2015
- S. 1820 Early Participation in Regulations Act of 2015
- S. 1607 Independent Agency Regulatory Analysis Act of 2015
Simplifying the Tax Code
We must also take a good, hard look at our federal tax code and strive to simplify it. Our tax code is a prime example of how government inefficiency and waste can negatively impact every day Iowans and their businesses. Americans pay untold amounts of money each year attempting to comply with our outdated and loophole-ridden tax code. According to the Internal Revenue Service (IRS), the average nonbusiness taxpayer spends eight hours each year compiling and submitting federal tax documents, while businesses incur labor costs that average 24 hours. In addition to expenses associated with labor, families and small businesses bear costs associated with the broad range of tax forms available, software used, and the geographical region in which the taxpayer files.
Plans concerning tax reform should be based on common sense, sound financial policy, and ultimately lessen the burden placed on families and small businesses across Iowa. I will continue to use these principles while I monitor any proposed legislation to simplify and streamline our tax code.
Click the links below to read more about my efforts related to improving our economy.