Congressman Tim Griffin (AR-02) praised the passage of three bills aimed at encouraging private sector job creation from the House Judiciary Committee earlier today.
“Too many Americans find themselves out of work during these tough economic times. Combined, these three bills address our nation’s overly burdensome regulations, complicated tax system, and frivolous lawsuits,” Griffin said.
According to the U.S. Small Business Administration, the cost of regulatory compliance to small businesses is over $10,500 per employee, which is 36 percent higher than the costs faced by large firms. The first bill passed today, the Regulatory Flexibility Improvements Act (H.R. 527), will close loopholes and reduce the disproportionate burden that overregulation places on small businesses. This will enhance their ability to create jobs and contribute to America’s economic recovery.
“Last year alone, federal agencies added over 3,300 new regulations on U.S. employers, which combined with all the other regulations, costs our economy $1.75 trillion,” Griffin said. “I was proud to support this bill, which will help America’s job creators spend less on red tape and more on growing their businesses and hiring workers.”
The Business Activity Tax Simplification Act (H.R. 1439) would prohibit states from taxing a business located out-of-state, unless the business has a physical presence within that state. Specifically, this bill would establish clear criteria for making that determination. Currently, states use varying criteria for determining a business’s presence, creating a complicated web of taxation standards for U.S. companies.
“Interstate commerce is a vital part of Arkansas’s economy, and this common-sense bill will promote fairness and encourage business expansion across the country,” Griffin said. “Leveling the tax field for Arkansas businesses will expand the potential for Arkansas workers.”
The third bill, the Lawsuit Abuse Reduction Act (H.R. 966) is just over a page long, but should eliminate hundreds of thousands of pages of wasteful legal filings in federal court.
“The time and resources business owners are forced to spend defending their reputations from frivolous lawsuits comes at a cost to hiring more employees. This bill will reinstate mandatory sanctions for attorneys who file meritless suits,” Griffin said.
Each of these bills passed the House Judiciary Committee and will now be brought to the full House for further consideration.
