Cut the Red Tape

That's the message from the House of Representatives about how to help small businesses grow here, rather than moving their work abroad.

The U.S. House took a small step to ease the regulatory burden on U.S. businesses May 18, when it passed the Paperwork and Regulatory Improvement Act by a 375-54 vote. The legislation requires the Office of Management and Budget to identify steps the Internal Revenue Service could take to reduce the paperwork burden on small businesses. The IRS is responsible for 80 percent of the government paperwork that individuals and businesses must fill out.

The bill also requires all agencies to provide OMB with an annual estimate of the costs and benefits of the rules it issues, and directs OMB to integrate these regulatory accounting reports in its annual budget report to Congress. This is needed, supporters say, so that Congress can see how much government programs cost the private sector in addition to how much they cost taxpayers.

OMB also would be directed to conduct a pilot study of regulatory budgeting, which would identify the costs and benefits of regulatory alternatives being considered by agencies.

Finally, Congress could ask the General Accounting Office -- its watchdog arm -- to conduct independent evaluations of rules that have a major economic impact.

More here.