Last week, Kamala Harris released a plan to support small businesses by increasing tax credits and “cutting red tape.” Donald Trump responded by saying he would slash regulation and vowing to eliminate 10 government regulations for every new one enacted.
Politicians like Harris and Trump often lament that small businesses are victims of overly burdensome government regulations. However, our research found that medium-sized businesses are actually hit hardest by the costs of regulatory compliance. Furthermore, agencies rarely assess whether the rules they create achieve their intended goals ex-post—or the real cost of regulation to businesses and the economy.
