Bills to Spur Startups
Last week, we highlighted a new piece of legislation introduced by Senators Jerry Moran (R-KS) and Mark Warner (D-VA) that pulls a number of ideas from a collection of policy reforms suggested by the Kauffman Foundation. It wasn’t the only new bill aimed at reviving the sluggish economy through new and young firms. Senators Jim DeMint (R-SC) and John Barrasso (R-WYO) introduced the Startup Expansion and Investment Act, zeroing in on regulatory burdens imposed on young and growing companies by the Sarbanes Oxley Act of 2002. The bill is based on similar legislation introduced in the House of Representatives by Rep. Ben Quayle (R-AZ) in September. H.R. 2941
“Dodd-Frank is only Congress’s most recent attempt to solve regulatory failures by layering on even more needless and counterproductive regulation, as the Sarbanes Oxley Act of 2002 took the same approach and has demonstrably harmed the job creation engine of our economy,” said DeMint. “This legislation would allow real job growth by encouraging companies to seek capital through the markets, a proven model for success, rather than government subsidies, which companies like Solyndra have proved is a broken model and leaves taxpayers bearing the consequences.”
“Our bill will chip away at the burdens faced by American businesses – particularly for new innovative companies who want to expand and create jobs. Since it mirrors recommendations put forward by the President’s Council on Jobs and Competiveness, it deserves bipartisan support,” said Barrasso. “For far too long, American free-enterprise has been squeezed and shackled by heavy-handed government regulations and mandates. In this troubled economy, government needs to move aside and let the job creators do what they do best – invent, invest, and grow.”
The bill is currently being considered by the Senate Committee on Banking, Housing, and Urban Affairs.