Tax Reform + Regulatory Innovation = Economic Growth and Jobs

From 1960 to the present, the regulatory burden, measured in paper, has gone from 20,000 pages of the Code of Federal Regulations (CFR) to 200,000 pages. Yesterday, the White House displayed stacks of paper with a stream of red tape across the symbolic decades of paper to make the case.

“Cut the Red Tape” is a new initiative led by the White House. The administration announced this effort on Monday, and the National Association of Manufacturers (NAM) fully supports the attention and commitment to reducing needless bureaucracy and red tape. NAM President and CEO Jay Timmons echoed this point with Sean McGarvey, president of the North America’s Building Trades Unions, in an opinion piece posted on Fox News.

The good news is that the administration is listening to manufacturers and announced plans to reduce the number of completed regulations released this year by a full 20 percent. The Trump administration announced that it has withdrawn or delayed at least 860 proposed regulations over the first several months of the administration. Manufacturers have long been on the hunt to reduce these regulatory burdens in favor of competitiveness and economic growth. The president’s Council of Economic Advisers put a finer point on it here. Several federal agencies hosted roundtable events across Washington, D.C., and will be making even more progress as the year continues.

Vice President Mike Pence called out NAM member Kathy Sarniak, CEO of Jeannette Specialty Glass. This Pennsylvania manufacturer would have been faced with the burdensome and costly overtime regulation had it not been reexamined by President Trump. The overtime regulation would have put her at a disadvantage with her overseas competitors, even though she produces a superior product. Now that the regulation has been eliminated, Kathy can focus on running her business, creating jobs and growing the economy.

Yesterday’s East Room event with the vice president and members of the Cabinet doubled down on the president’s recent commitment to the NAM Board of Directors to usher in sweeping tax reform and “remove job-killing regulations that sap the energy, creativity and dynamism from our country.”

In the 1960s, economic expansion in this decade reached close to 5 percent growth. Today, the president, his administration and the business community are together focused on achieving a level of economic growth we have not witnessed in decades. Less burdensome regulations and tax reform combined will deliver strong results for jobs and long-term economic growth, or as the president recently called it, “rocket fuel” for the economy.

Leave a Reply