White House cuts ‘red tape’ to empower businesses

EDITOR’S NOTE: The following is an editorial written by Robyn Sachs, who is the President and CEO of RMR & Associates, Inc. She was invited to the White House to attend the ‘Cut the Red Tape’ event, which was closed to the press.

President Donald Trump invited me and other businesses leaders to attend a session last week on the dangers of over-regulation and the damages that a clunky, convoluted system brings to small businesses across the country.

It was called  “Cut the Red Tape” event in the East Room of the White House, and it was followed by a second session at the Department of Labor. In the East Room, I had the opportunity to listen and share insights — with the benefit of a very special vantage point right behind first daughter, Ivanka Trump.

The president’s chief message was simple his administration will always champion, and never punish or inhibit the prosperity of  Americans. And thus far, Trump’s disruptive – and admittedly not always popular – approach to evoking real, sustainable change has hit a number of early successes: 1.2 million new jobs created, a GDP now over 3 percent, a surging stock market and an anti-red tape commitment that centers on getting rid of every single outdated regulation for maximum clarity, efficiency and an overall net reduction of regulations.

The goal? Freedom. The freedom of all Americans to prosper and succeed, and unlock and nurture their innovative powers for a brighter future than ever before.

Vice President Mike Pence’s speech outlined these key points:

• Regulations as they stand are weighing America down – literally. Right now there are about 13,000 regulations required for every man, woman, and child in the country – a processing cost of more than $14 trillion.
• This era of over-regulation, resulting in fewer jobs and opportunities overall, is over.
• The current slashing of regulations is to be the largest to date in the nation’s history.
• President Trump’s Executive Order #13771, passed in January was groundbreaking for its deregulatory potential and motivation for change in this critical area. The rule is simple: For every new regulation passed, two must be eliminated. Since its  passage, 860 outdated regulations have been slashed so far.

The impact of EO #13771 was unmistakable when we attended the follow-up session at the Department of Labor’s headquarters shortly following the White House meeting. The Trump administration is taking swift and decisive action to eliminate unnecessary regulation — an effort many could easily describe as Herculean at best.

Another very interesting part of the afternoon was the segment featuring officials from the Small Business Administration (SBA), including its administrator, Linda McMahon. Not only did I find Linda to be very dynamic and energetic, essential elements to bring life and change to a difficult transitional period, I also appreciated her approach to her job. McMahon acknowledged the tremendous economic power of small businesses, which collectively created about 68 million jobs across the country, and underscored her key goals: to only keep regulations that NEED to be there, and to make government operations more efficient and effective overall.

Since taking office, McMahon and her team have traveled the country, listening and sharing insights to the small business community.

The major concerns I heard from small business owners in the room were:

• Overtime rules;
• Additional costs associated with paid sick leave and FMLA;
• The layered costs of Obamacare on small businesses.

I shared a personal story and concern of my own related to internship programs and the unintended consequences of DLLR regulations that are actually disincentivizing employers to bring on paid interns because of the requirement to hire them as staff. These restrictions largely inhibit opportunities for professional growth for young people.

Another major observation that emerged from these discussions was from a woman who owned a chemical company in Southern Virginia. She hit on a key point that I could relate to – businesses are looking for certainty. The issue? Changing program names as administrations come and go typically require businesses to recertify (at vast expense, i.e. tens of thousands of dollars) regardless of the fact that the programs themselves and their provisions remain unchanged.

Her point? Simply put, don’t change things just to change them — and don’t make companies have to jump through hoops to comply.

All in all, I spent a gorgeous, inspiring day in a beautiful place just brimming with history. The intimate setting in the East Room created an inspiring, close-knit feeling to the event, and it was a truly memorable experience to sit in close proximity to the vibrant, dynamic Cabinet members and directly behind the gracious and classy Ivanka herself.

And me?

I feel renewed and re-energized, both as a person and a small business owner. Trump is a disrupter, and, like him or not, he is effecting change that will be significant for our country in the weeks and years to come. While change is hard and often uncomfortable, it’s necessary to drive the success, wealth, and innovative spirit of entrepreneurship that sets us apart as Americans and makes us the unique, dynamic, country and world leader that we are.

 

This article is republished with permission from SmartCEO.