McCaul Introduces the One In, Two Out Act to Reduce Government Regulations

WASHINGTON, D.C. – Today Congressman Michael McCaul (R-TX) introduced the One In, Two Out Act which would require any federal agency issuing a new regulation to repeal two existing regulations before the new one takes effect.

Modeled after the successful British policy, the One In, Two Out Act requires government departments to assess the net cost to business of complying with any new regulation that is proposed (an “in”). For major regulations with an annual economic cost of more than $100 million, a deregulatory measure (an “out”) must be found that reduces the net cost by at least the same amount before the new regulation may go into effect. When this policy was enacted in the U.K., departments proposed a total of 157 domestic regulatory measures, 119 of which would have imposed a burden on business. After just six months, only 46 regulations remained, and only 11 of those imposed a net cost to business.

“This commonsense policy should be emulated in the United States, where the number of pages in the Code of Federal Regulation has more than doubled since 1975” said Congressman Michael McCaul (TX-10). “Small businesses in particular are struggling to keep up with complex and costly regulations. The One In, Two Out Act will force regulators to make tough choices when considering new regulatory burdens on businesses."

“I hear example after example from business owners, families, and farmers and ranchers across Kansas, how constant government overreach continues to obstruct their ability to plan for the future,” said Congresswoman Lynn Jenkins (KS-02). “With federal agencies churning out more and more regulations all the time, I am proud to join my colleagues in introducing this important legislation to try and relieve hardworking Americans from some of this burden.”

“I’m pleased to be a co-sponsor of this common-sense measure. America’s small businesses are strapped with too many costly regulations that don’t make sense. With our economy still struggling we should be easing regulations on small business, not adding more,” said Congressman Paul Cook (CA-08).

“As our government’s bureaucracy has grown, so has the number of regulations. In one of the worst economic recoveries since World War II, Washington should be encouraging economic growth; not stifling it. I am proud to cosponsor this common-sense legislation because it lays the groundwork for more growth, more jobs, and a brighter future,” said Congressman Tom Rice (SC-07).

“The more time and money American businesses must spend complying with regulations, the less they have to invest in new technology and new employees,” said Congressman Neugebauer (TX-19). “The One In, Two Out Act will reduce the regulatory burden from Washington, so businesses can focus on creating jobs.”

Small businesses in particular are struggling to cope with the incessant onslaught of regulations, which cost about $1.75 trillion annually, nearly twice as much as all individual income taxes collected last year. According to the U.S. Chamber of Commerce, businesses with fewer than 20 employees incur regulatory costs 42% higher than larger business. The Small Business Administration estimates the average regulatory cost per employee exceeds $10,500 per year. In the last decade alone, the number of major regulations (generally those with a $100 million annual economic cost) has increased by more than 60%. 2012 was the costliest year on record for federal regulations, with costs of up to $19.5 billion—more than double the regulatory costs of the next most expensive year.

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