Graves' Statement on Study Showing Regulatory Burden Costing Small Manufacturers

Press Release

House Small Business Committee Chairman Sam Graves (R-MO) today released the following statement regarding a new study from the National Association of Manufacturers that highlights the regulatory burden that confronts small manufacturers:

"Small businesses face record levels of red tape under President Obama's policies, and America's small manufacturers can attest that the regulatory burden is a growing problem. A study showing that federal regulations annually cost $2 trillion should be a wake-up call to this administration. Compliance costs are soaring for small businesses, which often do not have the employee expertise to decipher and handle more government paperwork and other mandates. The study finds that small businesses are annually spending $11,724 per employee to comply with federal regulations. The number increases for small manufacturers to $34,671 per employee, which means that small manufacturers are spending two-and-a-half-times more on federal regulatory compliance than large manufacturers. They are forced to invest in attorneys, accountants, consultants, tax preparers and other advisors, rather than their companies. Under this burden, the economy cannot sustain the growth needed to restore the good jobs and wages that can put more Americans back on track to budget for educational goals, homes and retirements. Small manufacturers and the entire economy would benefit from a major course correction away from burdensome government. It's time for Washington policies to start working with small businesses for growth, not against them."

Chad Moutray, the Chief Economist for the National Association of Manufacturers, will testify in tomorrow's Small Business Committee hearing: The Decline in Business Formation: Implications for Entrepreneurship and the Economy.

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