4 ways the Trump administration can drive commonsense regulatory reform
Washington’s out-of-control administrative state is trampling your freedoms, stifling innovation, and crushing the economy under a pile of frivolous regulations.
Federal regulations cost the U.S. economy more than $3 trillion annually. That’s roughly 12% of GDP destroyed by America’s bloated regulatory regime.
On average, businesses lose $12,800 per employee every year to keep up with regulatory requirements.
For small businesses, the regulatory cost of hiring is even higher — nearly $14,700.
This can’t continue.
The new administration has spoken about a return to prosperity. A good start is untangling the web of regulations now smothering economic growth.
Here are four ways Washington can drive regulatory reform:
- The REINS Act
The Constitution gave the power to regulate to Congress, not unelected bureaucrats. But rules created by regulatory agencies can be just as impactful as regulations passed by Congress.
The REINS Act ensures that Congress always maintains the final say over significant regulatory action. Any agency guidance with an economic impact of $100 million or more would require Congress’ explicit sign-off.
By supporting it, the Trump administration would uphold your constitutional right to control regulation through your elected representatives.
- Defend congressional oversight
The administrative state often finds ways to avoid congressional oversight, bypassing the checks and balances our republic relies on.
One glaring example is the “midnight rulemaking” at the end of a president’s term, when federal agencies scramble to push through rushed, poorly vetted rules that can cause massive economic damage.
The Midnight Rules Relief Act offers a simple solution: Instead of requiring Congress to repeal harmful regulations one by one, this bill lets Congress overturn multiple midnight rules with a single vote.
- Eliminate corporate handouts
Taxpayer dollars shouldn’t be used to prop up politically connected businesses. Yet Washington continues to pick winners and losers.
In this way, handouts are a type of covert market regulation that the government can use to direct the market toward its ends rather than yours.
From an economic perspective, this makes no sense. The market naturally rewards businesses that serve customers through profits and punishes those that don’t through losses.
If a business already provides customers with the best service, it doesn’t need handouts. If not, it doesn’t deserve them.
Ending subsidies and special-interest giveaways will level the playing field and unleash competition. Let competence, not favoritism, decide who succeeds.
- Implement a regulatory review process
Regulations should protect Americans without holding them back. But all too often, they do the opposite, creating barriers for small businesses, entrepreneurs, and communities.
Rolling back overreaching regulations will unleash innovation that America needs to grow.
To do this, the Trump administration will need to take a methodical approach. Every regulation must be scrutinized. James Valvo, chief policy counsel of Americans for Prosperity Foundation, has laid out a six-step plan to do just that.
The bottom line: Regulations are costing the country trillions and stifling opportunity across the board. The Trump administration can free up resources, empower workers, and ignite economic growth by slashing red tape and focusing on these commonsense reforms.
Visit the AFP Action Center to see how you can help push back against the overgrown regulatory state.
