Regulations Hit Small Businesses Hardest
September 5, 2003
President Bush isn't resting on the oars when it comes to the economy -- his six-point plan, unveiled Thursday, is a case in point, says Investor's Business Daily (IBD).
What IBD especially likes is the plan's focus on the nation's 24 million small businesses. They create an estimated 80 percent of all new jobs in this country, and the U.S. job machine won't get going again until they do.
The president's plan will go after job-killing rules. The burden of government regulations hit small businesses hardest, explains IBD, so cutting them would lead to more jobs:
- Large firms with more than 500 workers pay $4,464 in regulatory costs per employee.
- Medium-sized firms with between 20-499 workers pay $4,319 in regulatory costs per employee.
- Small firms with fewer than 20 workers pay $6,975 regulatory costs per employee.
Bush would also make health care costs less burdensome for small employers by letting them pool their resources to buy health coverage at lower rates. Double-digit gains in health premiums are a major reason for slow hiring -- and a big reason 42 million Americans, many with jobs, have no health insurance.
We need more action from the president and Congress to recoup the 2.7 million jobs lost since 2001. Bush's new plan is a good start, says IBD.
Source: Editorial, "Keeping At It," Investor's Business Daily, September 5, 2003.
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