This provision addresses several important concerns. Regulation can have a disparate impact on small businesses. Many regulations also impose unfunded mandates on State, local and tribal government. Unfunded mandates are putting a severe strain on these governments, forcing them to raise taxes, reduce essential services, or even face bankruptcy. Finally, the public has a right to know that there is no free lunch.
Regulation can reduce productivity, wages and economic growth.
In the end, the public pays for regulatory programs through higher prices and taxes, reduced government services, and squandered opportunities to do better. It is time for the Government to come to grips with the good, the bad, and the ugly about regulation so we can design a smarter, more cost effective regulatory process.