Trump orders cuts in regulatory process

WASHINGTON, D.C. (Jan. 31, 2017) — President Trump has signed an executive order designed to cut regulations for small business, a move welcomed by small business pundits.

The new order directs regulatory agencies to eliminate at least two existing regulations for every new regulation issued and to "prudently" manage and control costs.

Among the first to comment on the new order were the National Federation of Independent Business (NFIB) and National Small Business Association (NSBA).

The NFIB called the move a "good first step on the long road toward eliminating ball-and-chain regulations so small businesses can create jobs and expand the economy," while the NSBA called it a "very welcome first step" toward reining in the "massive federal regulatory web."

According to NFIB research, small business owners rank unreasonable government regulations as their second most important problem and have rated them in their top three concerns for 96 consecutive months.

The NFIB stressed that the rules to be issued by the Office of Management and Budget (OMB) should "emphasize that the extraordinary costs and complexity of regulations falls hardest on America's small and independent businesses. Regulatory agencies and OMB should keep that in mind as they execute the President's order."

The NSBA said according to its research, the average small-business owner spends at least $12,000 every year dealing with regulations.

"Our federal regulations have real-world implications for economic growth: more than half of small businesses have held off on hiring a new employee due to regulatory burdens," said NSBA President and CEO Todd McCracken, in a prepared statement.

"This burden is becoming an insurmountable burden to those who would consider starting their own business: when asked to estimate their businesses' first year's regulatory costs, the average was a whopping $83,019."

"Every hour a small-business owner is reading, commenting or complying with a new regulation is time he/she isn't spending on growing the business and creating more jobs," he added.

In the preface to the new executive order, Mr. Trump stated it is the "policy of the executive branch to be prudent and financially responsible in the expenditure of funds, from both public and private sources.

"Toward that end, it is important that for every one new regulation issued, at least two prior regulations be identified for elimination, and that the cost of planned regulations be prudently managed and controlled through a budgeting process."

Further, the order directs the heads of all agencies to keep the "total incremental cost" of all new regulations, including repealed regulations, at or below the cost in fiscal 2016, "unless otherwise required by law…."

Regulations issued with respect to a military, national security, or foreign affairs are exempt.