President Obama has recently submitted a jobs plan to Congress. Unfortunately for him, the reception has been less than stellar even among members of his own party. In typical Obama style, he is now going around Congress to start creating those jobs and is spending $21 billion to do so.
This is not a new tactic for President Obama as he has often used regulatory agencies to accomplish what he cannot get through legislatively. For instance, Congress rejected Cap and Trade yet the EPA has implemented most of the cap and trade policies on its own. Congress wouldn’t pass an immigration reform bill, so President Obama used an executive order to grant what amounts to amnesty. Under this administration, the FCC has tried to put in place a new regulatory structure for the internet called Net Neutrality–again, something Congress wouldn’t pass.
The President is becoming increasingly bold about these kinds of maneuvers. Recently while announcing exemptions from the No Child Left Behind Law, President Obama said the following:
I’ve urged Congress for a while now, let’s get a bipartisan effort, let’s fix this,” Obama said. “Congress hasn’t been able to do it. So I will. Our kids only get one shot at a decent education. They cannot afford to wait any longer. So, given that Congress cannot act, I am acting…
This is not the mindset of someone who believes in the U.S. Constitution and the separation of powers.
And that doesn’t even begin to address problems with the actual policy. The regulatory burdens in this country have become so heavy and difficult, many businesses are looking for ways to move over seas to places that have a much more business-friendly environment. Recently Coke announced it was ramping up its investments in China. The Coke CEO, Muhtar Kent, made the following statements about his reasons for shifting more investment to China:
“Coca-Cola now sees the US becoming a less friendly business environment than China, … citing political gridlock and an antiquated tax structure. … Muhtar Kent, Coke’s chief executive, said ‘in many respects’ it was easier doing business in China, which he likened to a well-managed company. ‘You have a one-stop shop in terms of the Chinese foreign investment agency and local governments are fighting for investment with each other … They’re learning very fast, these countries … In the west, we’re forgetting what really worked 20 years ago. In China and other markets around the world, you see the kind of attention to detail about how business works and how business creates employment’. …”
“Kent argued that US states did not compete enough with each other to attract businesses while Chinese provinces were clamouring to draw investment from international companies.
There are a growing number of business owners and investors who have publicly stated their unwillingness to invest or expand due to the uncertainty in the regulatory field and with the nation’s economy. Back in February, the House Oversight and Government Reform Committee heard directly from small business owners about the devastating impact the tsunami of Obama Administration regulations is having on their ability to grow and create jobs.
“The cost of regulation incurred by all businesses is eventually passed on to the consumer and our workforce. Regulatory costs require business owners like me to devote more time and resources to government compliance, which means less capital devoted to investment and job creation.
“If regulatory burden continues to grow we, along with all other private sector companies, will no longer be able to compete in the world market. Jobs will not be created and new businesses will not be formed. You will suffocate the system that has produced everything we enjoy today. It is that simple.”
It’s time for Congress to stand up to the President and take back its Constitutional authority. Rep. Geoff Davis and Sen. Rand Paul are proposing legislation that will do exactly that. Called the REINS Act, H.R. 10 will require major regulations (defined as regulations that have more than a $100 million impact on the economy among other things) to be voted on by Congress before they have the force and effect of law.
Alabama Representatives Spencer Bachus, Jo Bonner, Mo Brooks and Martha Roby have already signed on as co-sponsors of the legislation, along with Senator Jeff Sessions in the Senate. We ask you to encourage Representatives Robert Aderholt, Mike Rogers and Terri Sewell to sign on as well, along with Senator Richard Shelby. Congressional Switchboard 202-224-3121