Chamber Testifies on Cost-Benefit of Government Regulations

WASHINGTON, D.C. – The United States Chamber of Commerce urged lawmakers to improve regulatory accounting in testimony before the House Subcommittee on Energy Policy, Natural Resources and Regulatory Affairs on OMB's draft 2004 Annual Report to Congress on the costs and benefits of regulations.

"Federal rules and standards must be based on scientifically sound, transparent, and peer-reviewed science," said William Kovacs, Chamber vice president for environment, technology and regulatory affairs. "Cost benefit analysis is critical in establishing effective government regulations."

The costs and impacts of regulations on the nation's economy are staggering, according to the Chamber. The annual costs of all government regulations are estimated to be $843 billion. The annual cost of environmental regulation alone is about $250 billion. Regulation costs small enterprises $6,975 per employee; almost 60 percent more per employee than a large company.

"Poorly thought-out regulatory actions can cause significant harm to the economy and to small businesses in particular," Kovacs continued. "Cost-benefit analysis is not an end in itself, but is a tool to help ensure that the greatest public benefit is achieved in the most efficient manner."

The U.S. Chamber of Commerce is the world's largest business federation representing more than 3 million businesses and organizations of every size, sector and region.

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