Compounding the stimulus debacle was a massive regulatory initiative that crimped business activity. In the last three years, 106 major new regulations have saddled the private sector with additional annual costs estimated to run $46 billion per year, according to research by the Heritage Foundation.
Like excessive taxation, regulatory excesses harm the economy. They hamstring investment and innovation and siphon off valuable resources that could be used to create jobs or improve wages.
Lawmakers must change course, reversing the harm inflicted by these big-government policies. Here’s how:
First, stop Taxmageddon – the massive tax increases coming on Jan. 1, when the Bush-era tax cuts and other tax policies expire and new tax hikes from Obamacare kick in. Blocking scheduled tax hikes on work and capital will help heal business and investment uncertainty and get people back to work. That’s just as true for a middle-income senior with dividend-paying stocks as it is for a wealthy venture capitalist.
Next, stop and reverse the rising tide of unnecessary red tape. This includes ending the Environmental Protection Agency’s tireless crusade against global warming. It means repealing the new Consumer Financial Protection Bureau, an unaccountable entity with unlimited power over every form of consumer credit, and the “Volker rule” to restrict bank investment – both spawned by the “Dodd-Frank” Wall Street reform law of 2012. And, of course, Obamacare must be repealed.
These harmful government interventions into what should be private markets have created vast uncertainty for employers, investors, and families.