And regulation begins when Congress passes legislation that delegates its lawmaking authority to the Federal agencies. The truth is that there is no free lunch. We all pay for regulatory mandates through hidden taxes in the form of higher prices, lower productivity and wages, and diminished economic growth and job opportunities. In particular, the costs of private sector mandates can hit hard on consumers, workers and small businesses. Consumers pay for mandates through higher prices for goods and services.
Workers pay through lower wages.
And small businesses pay through lower profitability and growth, which in turn means less job opportunities for workers. While regulatory mandates affect everyone, small businesses have a particularly tough time shouldering them. I have always said that agencies need to regulate smarter. But before we even reach that step, Congress needs to legislate smarter. Last year, this legislation passed the House, and in the Senate we reported it out of the Governmental Affairs Committee.