Government cutting red tape for business regulations

8/24/2011

The White House announced yesterday that a number of regulatory changes will be taking effect that may aid both small businesses and the government.

By cutting the red tape surrounding certain federal agencies, the administration hopes to streamline and simplify processes for businesses. This action will hopefully reduce the amount of time and money businesses and government branches spend meeting regulatory requirements and completing and submitting paperwork.

The goal is for the regulatory system to "measure, and seek to improve, the actual results of regulatory requirements," according to President Barack Obama. The changes were unveiled several months ago, and the finalized reform plans were presented on Tuesday.

Government branches involved in the restructuring include the Department of Health and Human Services, the Department of Transportation, the Internal Revenue Service and the Department of Labor, among many others. The White House expects the reforms to result in $10 billion in savings during the following five years.

The announcement, and the probable benefits to business and the economy, come at a pivotal time: Candidates are already ramping up their campaigns for the 2012 presidential race, and any gains in employment, commercial funding for small businesses or industry expansion will speak well for incumbent politicians involved in the reforms.