Washington, D.C. , Sep 21 - House Small Business Committee Ranking Member Sam Graves (R-MO) has released the following statement after the Small Business Administration’s Office of Advocacy released a report stating that small firms pay nearly $3,000 more per employee than larger firms to comply with government regulations:

“This report clearly illustrates the heavy burden that federal mandates place on small businesses.  As I have said before, piling unfair costs on the entrepreneurs who have lead our economy in the past is counterproductive and will only serve to drown job creation.  Adding insult to injury, this data does not take into account the new wave of regulations that are about to hit entrepreneurs, such as the 1099 reporting rule and other health care mandates, regulations in the financial reform law, and potential new EPA rules. 

“If we’re serious about creating jobs and encouraging a thriving private sector, we must take immediate steps to stop the flood of unnecessary mandates.  I sincerely hope that the Obama Administration and Majority Leaders in Congress will heed this warning for the sake of our small businesses.”

According to the Office of Advocacy’s report, the cost of environmental regulations in particular disproportionately falls on small firms, which pay 364 percent more than large firms to comply. The cost of complying with tax regulations affects small businesses 206 percent more than larger businesses.  A copy of the full report, entitled “The Impact of Regulatory Costs on Small Firms,” can be viewed here.