House Majority Leader Kevin McCarthy (CA-23) released the following statement on House passage of H.R. 37, the Promoting Job Creation and Reducing Small Business Burdens Act:
Excess regulations hurt jobs and put added costs on our economy. The number of regulations that have piled up over the past six years are compounding and holding back Main Street businesses. So I thank Representative Mike Fitzpatrick (PA-08) for putting together a good bill that includes a number of provisions to reduce red tape and makes it easier for small businesses to access the capital they need to grow and create good-paying jobs. These provisions have enjoyed overwhelming bipartisan support in the past, so I am disappointed that a fracture in the Democratic Caucus is causing so many Democrats to switch their votes in a zealous defense of Dodd-Frank regulations.
Regulations have held back job growth? Rep. McCarthy must not keep up with the news. If there was a fracture in the Democratic caucus, it evidently allowed 29 Democrats to join almost all Republicans in voting AYE.
Democratic Party Leader, Nancy Pelosi, has a different view:
The Wall Street giveaway passed today chips away at the Volcker Rule, a critical part of the Wall Street reform law that protects Americans against the risky practices of some on Wall Street that just a few years ago brought our country to the brink of economic collapse. Enough is enough: the interests of big banks should not trump those of American families that still struggle to make ends meet.
The Administration strongly opposes H.R. 37.
The President has been clear about his opposition to legislation that would weaken and undermine the Dodd-Frank Wall Street Reform and Consumer Protection Act. To that end, the Administration has significant concerns with provisions that would undermine the Volcker Rule by further delaying a part of its implementation to 2019. The Volcker Rule is a key component of the Dodd-Frank Wall Street Reform Act that prevents institutions from taking excessive risks through proprietary trading and fund investing, and taxpayers should not have to wait that long to have limits in place that protect them from risky practices.
The Administration also has concerns with other provisions that would roll back important derivatives reforms, as well as measures in the bill that would diminish protections for investors in public companies, including through reducing related reporting and disclosure requirements. More generally, the Administration has strong concerns with any provision that would weaken key consumer and investor protections and elements of financial oversight.
The Dodd-Frank Wall Street Reform and Consumer Protection Act is helping prevent the kinds of excessive financial risk taking that caused the worst recession in more than 70 years, left millions of Americans unemployed, and resulted in trillions of dollars in lost wealth. These reforms help protect hard working families in everything from saving for retirement to the ability of small businesses to access credit through a stable financial system. H.R. 37 unnecessarily puts these working and middle-class families at risk while benefiting Wall Street and other narrow special interests.
Does H.R. 37 create jobs and reduce small business burdens as its title suggests or repeal important reforms risking another recession with widespread unemployment and trillions in financial losses? It depends on whom you ask. Rep. Reed must agree with Majority Leader McCarthy: he joined every Republican save Rep. Walter Jones in voting AYE. Should this bill pass the Senate, President Obama promises a veto.
© William Hungerford – January 2015