Trump’s regulation trims are all for show
For small businesses, devil’s in the details
With smiling small-business owners surrounding him, Donald Trump held a ceremony to sign one of his many executive orders on his 10th day in office. This executive order was drafted to keep one of Trump’s campaign promises of cutting regulations for small businesses. It’s a nice show, Mr. Trump. But that’s mostly what it is: a show.
“This will be the largest-ever cut by far in terms of regulation,” Trump said. “We want to end the unfairness between small and big business caused by regulation.” The executive order would require federal agencies to eliminate two regulations for every new one they enact.
Cutting regulations affecting small business would be nice indeed, but as with most things in government — but especially with this administration — the devil’s in the details.
Now, Trump’s executive order to eliminate two existing regulations for every new regulation is a little like someone telling me I have to get rid of two items of clothing from my closet for every new one I buy. Bring it on. I can (and, let’s face it, should) easily get rid of stuff I haven’t worn in years, no longer fits, is no longer in fashion. And then I can go to town shopping for new stuff. Woohoo!
It’s a nice gesture, but, in the end, almost meaningless. There are probably plenty of regulations that haven’t been enforced in years, are no longer applicable, or really don’t make much difference. Any bureaucrat worth their government paycheck can find old regulations to put in the dustbin while creating new ones.
More importantly, the regulations that most affect small businesses happen at the local or state level. Want to open a hair salon? You’ll probably need a cosmetician’s license from your state and building permits and licenses from your city.
The big beneficiaries of regulation cuts and lax enforcement? Big corporations, not small businesses, such as that big manufacturer of hair care products required to make sure those products are safe, protecting your salon’s patrons.
If Trump really wanted to help small businesses reduce the burden of regulations and paperwork, he could take these meaningful steps:
Expand the “Startup in a Day” program. In 2015, the Small Business Administration (SBA) launched the program to help cities, counties and states streamline their licensing and permit processes.
Create a standard tax deduction for sole proprietors.
Expand support for Small Business Development Centers (SBDCs). They offer free counseling and low-cost training, including helping entrepreneurs navigate regulations.
Trump’s executive order to eliminate two existing regulations for every new regulation is a nice gesture, but, in the end, almost meaningless.