Small business pessimism should spur regulatory overhaul: Blanche Lincoln

By Bernie Becker - 12/11/12 07:34 PM ET

A former Democratic senator said that a new survey showing plummeting optimism among small business owners illustrates the need for Washington to overhaul its regulatory policy.

Sen. Blanche Lincoln (Ark.), who lost her bid for a third term in 2010, said the drop in the National Federation of Independent Business index underscored that the small business community needed more certainty

“Escalating fears over the fiscal cliff, coupled with a tidal wave of new regulations, are having a paralyzing effect on small business’ ability to create jobs and stimulate the economy,” Lincoln, the chairwoman of an NFIB coalition looking to streamline the regulatory process, said in a Tuesday statement.

The NFIB index dropped to 87.5 in November, a more than five point decline and one of the lowest monthly ratings the federation has ever recorded. The small business group says November’s election results prompted owners to become drastically more pessimistic about how the economy will look in six months.

The survey comes as President Obama and House Speaker John Boehner (R-Ohio) continue to search for a tax-and-spending deal, with automatic tax increases and spending cuts looming at the end of the year.

House Republicans and the White House have both sent offers since Boehner and Obama met on Sunday, with the GOP continuing to offer $800 billion in revenue and the administration now setting the bar at $1.4 trillion.

Lincoln, who chairs the Small Businesses for Sensible Regulations coalition, said in her statement that 6,000 looming rules and guidelines were weighing down businesses.

“President Obama and Congress must work together to address these regulatory concerns,” she said.

“We need a greater sense of transparency in the rule-making process and accountability from both Congress and the courts. Doing so will give small businesses the confidence they need to expand and invest in the economy.”

The NFIB coalition had previously called for the Obama administration to stop issuing regulations for a period, and said small businesses should have more input in the process.

The administration has outlined some efforts to streamline regulations, but Republicans say those measures don’t go far enough.