Newsletter: Straight Talk with Sam - Bureaucratic Barriers

Statement

Dear Friends,

This week, the Committee's hearings focused on congressional oversight of two very different problems that have something in common -- they both highlight the bureaucratic burden on small businesses.

In recent years, Committee members worked at length on various reforms to increase participation of small businesses in federal contracting, and they were very pleased to see these changes signed into law on January 2, 2013 as part of major defense legislation. That was a year-and-a-half ago, and so far, the Obama Administration has been slow to implement these provisions of the law on behalf of small businesses. This week, the Committee heard testimony lamenting this inertia and predicting that many of the benefits of the reforms won't be felt until 2017.

The federal bureaucracy isn't the only source of regulatory burdens, as the states also add costs and requirements that can impact growth. One common way states impose costs and burdens on would-be entrepreneurs -- or actually limit competition -- is through occupational licenses. These requirements are becoming more expensive and sweeping, covering more occupations. What used to be thought of as a safety provision for 5 percent of professions, such as doctors and engineers, is now being applied to professions that pose little public threat. Various states now license professions such as interior designers, florists, or even fortune tellers, and today these requirements impact 30 percent of occupations. These hurdles are harder to clear for lower and middle income Americans and are standing in the way of economic opportunity. I represent a district in Missouri, a state which consistently ranks among those with the lowest license burden, but even here one entrepreneur's effort to start hair-braiding business ran into roadblocks.

We'll continue to work for common sense policies that remove obstacles to growth and job creation.

Sincerely,

Sam Graves
Chairman

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