Deregulation a major focus of the Trump Administration

Deregulation a major focus of the Trump Administration
December 07 09:40 2017 Print This Article

President Donald Trump campaigned on freeing up American industries by lowering taxes and eliminating burdensome federal regulations.  The tax component is rapidly working its way through Congress, with the House and Senate reconciling their tax reform bills in a conference committee.  The effort to reduce regulations has already been a big success since Trump took office on January 20 – nearly 1000 regulations approved by the Obama Administration have already been eliminated.

The President’s Council of Economic Advisors estimates that complying with federal regulations cost American businesses $881 Billion in 2015 and that the average small business spends $11,724 per employee in compliance costs.  Federal regulations result in higher consumer prices, less investment in research and development, and slower economic growth.  Many economists credit deregulation for two consecutive quarters with economic growth above 3% for the first time in more than a decade.  President Trump formed a Deregulation Task Force before taking office and has asked all cabinet secretaries and agency directors to seek ways to reduce unnecessary regulations and administrative costs.

A recent survey of corporate Chief Financial Officers by business network CNBC cites that 74% believe that regulatory cuts have had the most positive impact on their companies.  Two major regulatory burdens which remain in the way of business expansion are the Affordable Care Act (Obamacare) and the Dodd-Frank financial regulatory law, which makes it difficult for small businesses to obtain loans.  While cabinet secretaries can make administrative changes to those laws to ease the burden on businesses, it will require acts of Congress to repeal them.

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