Bill Overview
Title: Cut Red Tape Act of 2022
Description: Cut Red Tape Act of 2022 This bill establishes in the legislative branch the Regulatory Improvement Commission to make recommendations and propose legislation for modification, consolidation, or repeal of regulations that have been finalized not later than 10 years before the establishment of the commission for the purpose of reducing compliance costs, encouraging growth and innovation, improving competitiveness, and protecting public safety. The commission must give priority to such regulations that (1) impose disproportionately high costs on a small entity, (2) create substantial recurring paperwork burdens or transaction costs, or (3) could be made more effective while reducing regulatory costs. The bill sets forth reporting requirements for the commission and procedures for congressional consideration of commission reports, recommendations, and proposed legislation.
Sponsors: Rep. Gottheimer, Josh [D-NJ-5]
Target Audience
Population: People affected by changes in government regulations through economic activities
Estimated Size: 100000000
- The bill aims to address and improve existing regulations that impact small entities, which include small businesses and non-profits.
- Small businesses, which form a large part of the U.S. economy, employ millions of people and are often disproportionately affected by regulatory compliance costs.
- Changes in regulation can lead to increased economic growth and innovation, potentially impacting a significant number of people through job creation and economic opportunities.
- A potential reduction in substantial paperwork burdens can affect a large number of businesses that deal with federal regulations, thereby also affecting their employees, customers, and related communities.
Reasoning
- The policy is aimed at reducing regulatory burdens primarily on small businesses, which should result in better growth opportunities for those enterprises and potentially more jobs.
- Given the population size and the overall goal of improving economic conditions via regulation reform, there are many indirect effects that may not be immediately visible.
- The budget is small relative to the potential vast number of regulations involved, so changes will need to be very targeted to have meaningful impacts.
- The policy's impact will likely have a significant geographical dimension, impacting more those regions with a higher density of small businesses and startups.
Simulated Interviews
Small Business Owner (Denver, CO)
Age: 45 | Gender: female
Wellbeing Before Policy: 6
Duration of Impact: 5.0 years
Commonness: 10/20
Statement of Opinion:
- I hope this policy will help reduce the amount of paperwork we have to do. It takes up so much of our time that we could spend better on growing the business.
Wellbeing Over Time (With vs Without Policy)
| Year | With Policy | Without Policy |
|---|---|---|
| Year 1 | 7 | 6 |
| Year 2 | 7 | 6 |
| Year 3 | 7 | 6 |
| Year 5 | 8 | 6 |
| Year 10 | 8 | 6 |
| Year 20 | 7 | 5 |
Tech Startup Founder (Austin, TX)
Age: 34 | Gender: male
Wellbeing Before Policy: 7
Duration of Impact: 10.0 years
Commonness: 5/20
Statement of Opinion:
- Regulations can really hold us back, especially when they're hard to understand or seem unnecessary.
Wellbeing Over Time (With vs Without Policy)
| Year | With Policy | Without Policy |
|---|---|---|
| Year 1 | 8 | 7 |
| Year 2 | 8 | 7 |
| Year 3 | 8 | 7 |
| Year 5 | 9 | 6 |
| Year 10 | 9 | 6 |
| Year 20 | 8 | 5 |
Corporate Lawyer (New York, NY)
Age: 52 | Gender: male
Wellbeing Before Policy: 8
Duration of Impact: 2.0 years
Commonness: 7/20
Statement of Opinion:
- It's good to cut down unnecessary regulations, but we must ensure important protections are not lost. Much of my work deals with interpreting regulations for individuals.
Wellbeing Over Time (With vs Without Policy)
| Year | With Policy | Without Policy |
|---|---|---|
| Year 1 | 8 | 8 |
| Year 2 | 8 | 8 |
| Year 3 | 8 | 8 |
| Year 5 | 8 | 8 |
| Year 10 | 7 | 8 |
| Year 20 | 7 | 7 |
Non-Profit Manager (San Francisco, CA)
Age: 28 | Gender: female
Wellbeing Before Policy: 6
Duration of Impact: 3.0 years
Commonness: 8/20
Statement of Opinion:
- We are concerned this act could lead to a relaxation of important environmental regulations that affect our work.
Wellbeing Over Time (With vs Without Policy)
| Year | With Policy | Without Policy |
|---|---|---|
| Year 1 | 6 | 6 |
| Year 2 | 6 | 6 |
| Year 3 | 6 | 6 |
| Year 5 | 5 | 6 |
| Year 10 | 5 | 5 |
| Year 20 | 4 | 5 |
Retired (Salt Lake City, UT)
Age: 61 | Gender: female
Wellbeing Before Policy: 7
Duration of Impact: 0.0 years
Commonness: 12/20
Statement of Opinion:
- I hope this can help small businesses stay afloat as they often struggle with all the paperwork.
Wellbeing Over Time (With vs Without Policy)
| Year | With Policy | Without Policy |
|---|---|---|
| Year 1 | 7 | 7 |
| Year 2 | 7 | 7 |
| Year 3 | 7 | 7 |
| Year 5 | 7 | 6 |
| Year 10 | 6 | 6 |
| Year 20 | 6 | 5 |
Small Manufacturing Plant Owner (Chicago, IL)
Age: 43 | Gender: male
Wellbeing Before Policy: 5
Duration of Impact: 8.0 years
Commonness: 10/20
Statement of Opinion:
- The constant changes in regulations can be expensive and time-consuming for us. Reducing unnecessary ones would be a relief.
Wellbeing Over Time (With vs Without Policy)
| Year | With Policy | Without Policy |
|---|---|---|
| Year 1 | 6 | 5 |
| Year 2 | 6 | 5 |
| Year 3 | 7 | 5 |
| Year 5 | 8 | 5 |
| Year 10 | 8 | 5 |
| Year 20 | 7 | 4 |
Freelancer (Miami, FL)
Age: 27 | Gender: other
Wellbeing Before Policy: 6
Duration of Impact: 3.0 years
Commonness: 15/20
Statement of Opinion:
- If small businesses can save money on regulatory costs, they might be able to hire more freelancers or increase our pay.
Wellbeing Over Time (With vs Without Policy)
| Year | With Policy | Without Policy |
|---|---|---|
| Year 1 | 6 | 6 |
| Year 2 | 6 | 6 |
| Year 3 | 7 | 6 |
| Year 5 | 7 | 6 |
| Year 10 | 7 | 6 |
| Year 20 | 6 | 5 |
Restaurant Owner (Los Angeles, CA)
Age: 50 | Gender: male
Wellbeing Before Policy: 5
Duration of Impact: 10.0 years
Commonness: 9/20
Statement of Opinion:
- Simplifying regulations could help us focus more on our business operations instead of worrying about compliance all the time.
Wellbeing Over Time (With vs Without Policy)
| Year | With Policy | Without Policy |
|---|---|---|
| Year 1 | 6 | 5 |
| Year 2 | 6 | 5 |
| Year 3 | 7 | 5 |
| Year 5 | 7 | 5 |
| Year 10 | 7 | 6 |
| Year 20 | 6 | 5 |
Tech Industry Worker (Boston, MA)
Age: 37 | Gender: female
Wellbeing Before Policy: 8
Duration of Impact: 0.0 years
Commonness: 11/20
Statement of Opinion:
- I'm glad there's an effort to reevaluate regulations, even though it doesn't impact my role much. However, less regulation might have unintended consequences.
Wellbeing Over Time (With vs Without Policy)
| Year | With Policy | Without Policy |
|---|---|---|
| Year 1 | 8 | 8 |
| Year 2 | 8 | 8 |
| Year 3 | 8 | 8 |
| Year 5 | 8 | 8 |
| Year 10 | 8 | 8 |
| Year 20 | 7 | 7 |
Small Event Planner (Seattle, WA)
Age: 31 | Gender: male
Wellbeing Before Policy: 4
Duration of Impact: 5.0 years
Commonness: 14/20
Statement of Opinion:
- I lose a lot of time due to the paperwork involved. If this could be simplified, it would make my job much easier.
Wellbeing Over Time (With vs Without Policy)
| Year | With Policy | Without Policy |
|---|---|---|
| Year 1 | 5 | 4 |
| Year 2 | 6 | 4 |
| Year 3 | 6 | 4 |
| Year 5 | 7 | 4 |
| Year 10 | 7 | 4 |
| Year 20 | 6 | 4 |
Cost Estimates
Year 1: $5000000 (Low: $4000000, High: $6000000)
Year 2: $5000000 (Low: $4000000, High: $6000000)
Year 3: $5000000 (Low: $4000000, High: $6000000)
Year 5: $5000000 (Low: $4000000, High: $6000000)
Year 10: $0 (Low: $0, High: $0)
Year 100: $0 (Low: $0, High: $0)
Key Considerations
- The effectiveness of the commission is uncertain until its reports and recommendations are made and acted upon.
- Potential positive impacts depend on how well recommendations are implemented and accepted politically.
- Savings will depend on the speed and scope of deregulation.