[Congressional Record Volume 142, Number 100 (Tuesday, July 9, 1996)]
[House]
[Page H7117]
From the Congressional Record Online through the Government Publishing Office [www.gpo.gov]




              FEDERAL REGULATION IS CONSTRICTING BUSINESS

  Mr. HEFLEY. Madam Speaker, I come to the House floor today to talk 
about a recently released survey conducted by the U.S. Chamber of 
Commerce regarding Federal regulation and its effect on business. The 
results of the study are overwhelming and I commend the U.S. Chamber 
for their efforts.
  When you look at the results of this study it's easy to see why so 
many freshman Republicans were elected in 1994 on the promise of less 
government.
  Duplicative, burdensome regulation of business has caused job loss, 
lower wages, and in some cases increased the violation of the laws 
because employers are afraid to consult with the regulators and their 
gotcha mentality.
  This country's largest employer is small business and what this study 
shows is if we relieve them of many of these unnecessary regulations, 
we will increase salaries, increase employment, increase productivity, 
and stimulate the overall economy.
  As the study points out, currently the only people who are benefiting 
from overregulation are the attorneys, accountants, and compliance 
consultants.
  It's kind of like the Federal Government's own form of trickle-down 
economics. We'll create more regulations which will then create a need 
for lawyers, bureaucrats, and inspectors. Never mind that we're ruining 
small businesses. Maybe that's why the trial lawyers are such major 
contributors to the reelection of the current President.
  The most troublesome fact is one that many of us have been stressing 
for a long time, most recently during the debate over increasing the 
minimum wage. And that is, ultimately the costs incurred by the 
employer trying to comply with Federal regulations is passed on to the 
consumer which as we all know causes inflation.
  Additionally, one in six survey respondents reported having to lay 
off employees in order to offset the costs of compliance. I sincerely 
hope the U.S. Chamber puts an asterisk or a star or something by that 
figure on the copies of the study provided to Members who support 
further necessary regulation.
  Only 1 in 10 respondents reported learning about new regulations from 
the agency who enacted it. So all of the various trade associations and 
lobbyists are actually people who are simply trying to keep up with the 
hundreds of new regulations that affect their industry. In other words, 
the Federal Government is saying, ``We'll come up with whatever we 
want, and it's your job to find out what that is.''
  Finally, I'd like to talk a little bit about some of the legislative 
efforts that I personally have, and will, be working on. In fact, when 
I saw the results of the study it felt as though I was looking at a 
mirror.
  H.R. 707 is designed to reform OSHA in a manner that would move the 
agency's enforcement capabilities and efforts into more consultation 
and cooperation. Isn't it funny though how when the Democrats 
controlled the Congress and bills like mine were introduced the agency 
never even batted an eye. Now all of the sudden I've got Joe Dear, 
OSHA's Executive Director, calling my office saying, ``We want to work 
with you.'' But isn't it amazing that when they are coming up with 
these regulations they don't want to work with the businesses they are 
affecting.
  H.R. 1047 would encourage for voluntary compliance with environmental 
rules. Currently, if a company tried to police themselves and a 
potential environmental problem was found they can't even seek leniency 
from the Federal Government for trying to fix the problem.
  Last, I will soon introduce legislation that will exempt small 
businesses from many of these unneeded regulations. In short, we need 
to unchain our system of regulation and let it prosper.
  In closing, I think the Chamber is to be commended for their efforts 
on this study and I think it clearly shows how desperately we need to 
ease the regulation of our businesses. And I think it's very 
appropriate to bring this excellent study to the floor today because 
the other Chamber of this body will be considering raising the minimum 
wage today, a measure this Chamber passed regretfully I believe. 
Remember, the best thing about our Federal Government is, it's always 
there when it needs you.

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