Wrong. Way wrong. According to Andrew Langer, president of the Institute for Liberty, who spoke today at the Tuesday Morning Group, the federal government’s regulatory burden on small business equals $7,700 per employee. For a small, family-owned company, with 10 employees, that’s a $770,000 annual gorilla on its back.
This is small business, the engine that creates about two-thirds of all American jobs. That figure doesn’t include state and local regulations, either. Get the picture as to why we need smaller government?
The irony is that many big businesses don’t mind regulation. It locks in many advantages it has over competitors. That’s why Philip Morris lobbied for the recent bill that empowers the FDA to regulate tobacco (see New York Times). Large companies have the wherewithal, lawyers, accountants and savvy to maneuver around and take advantage of the avenues and loopholes the regs provide.
But you poor small business owner saps . . . good luck. More is on the way (see Entrepreneur’s Daily Dose blog).