Introduced to Congress in the First Quarter of 2011 were the below House and Senate bills to Repeal Dodd-Franks these bills have been placed with the House Finance, and various other House Committees for review (see bill for details), and with the Senate Finance Committee.
A Press Release from Senator Shelbys Office recently mentioned the Senate bill on September 22, 2011. This has surely also been communicated from the House and Senate Committees but this is where we are connecting to share with you. The press release from Senator Shelby's Office describes that the Cost-Benefit Constraint is being used in governmental correspondence which is a great sign that the thoughts are reaching Legislation, a step which will help us looking forward as a Nation to face and manage down the Debts and Deficits looking forward. One key way to help reduce Debts and Deficits is to promote jobs and get the Tax base moving again.
We support reasonable and rational efforts to get America back to work. A near 20% real unemployment rate in this country is not the "new" norm - it's a problem to be fixed with great urgency and careful consideration - a real challenge for ALL and your thoughts can help.
Returning to the consideration of these Bills and the Cost of Regulations, one of the key reasons we tuned in on this is we have been mentioning on twitter for some time the need to connect (overall) regulation at the Federal, State and Local levels to the Accounting measure of the Cost-Benefit Constraint (*) - the point where the benefit matches the cost. In the press release they used this specific terminology (on twitter) so we can see that the Legislature is tuned into the voice of constituents. The focusing of a cost-benefit measure in Legislation is not to eliminate all laws and rules,rather it is to work with a reasonable constraint that more efficiently and effectively plots a course for sustainable Public Finance and helps on reduction of the Debts and Deficits through Targeting the Efficiency of Government Legislation. Not to mention permitting Capital Markets to exist in a framework of reasonable Legislation, but not excessive Legislation. Regulation is a cost driver on Businesses and the Regulations should balance the need to protect citizens and also allow citizens to conduct business in a reasonable and ethical manner. Further, as all Businesses, Non Profits and Individuals exist with constraints and we need to find a way to bring this awareness to Legislation.
You can promote the debate on this in either direction by voicing your concerns to Congress at the House or Senate (reference the bills below for clarity). We think in general that a move towards cost-benefit constraints would help but to be fair the bills mention only repeal of Dodd-Franks at first read.
Note:
(*) The Cost-Benefit Constraint is part of the Conceptual Framework that has been historically used to develop FASB / US GAAP - the Standards we use in Accounting and Financial Reporting. You can make a strong case that due to the Financial Relevancy of Regulation to Finances that a similar framework should pertain to regulatory standards development.
The Cost-Benefit Constraint is not mentioned in these bills themselves however, Senator Shelby's press release brought it in as part of the discussion.
These bills are simple in measure to reduce Regulatory burden with broad repeal which would conceivably allow for the reconsideration of all regulatory measures at a future point. That future point now seems to be with a pre-implementation consideration of a cost-benefit constraint analysis.
Last Note: In general the perspective we share is that a certain degree of regulation is beneficial to protect the Nation, the Population, Investors and Businesses. You make your own decisions and pursue the path that best represents your position. This proposal is an opportunity to revisit the process of Regulation in the future and remove barriers to business in Regulation currently. The best point for any Regulation from an Accounting, Economic and Financial perspective, is most acceptable and sustainable at the cost-benefit constraint where the value to the community balances the cost of implementation.
Their simplicity in thought to Repeal is a stark contrast to the complexity we are all currentlty adapting to under Dodd-Franks.
Below please find the bills for your consideration,
The House bill referred to the Finance and other Committees:
Bills 112hr87ih
The Senate Version currently with the Finance Committee
Bills 112s712is
As always at DCarsonCPA.com our purpose is to better connect the line between Government, Industry, Business, Non Profits and Individuals to better support Client Services. Our overall position is non-partisan, but we will from time to time provide an Accounting / Finance perspective that we hope adds value for your insight and interest. Our primary focus is Accounting, Taxation, Compliance, Operations and bringing Clients greater insight through Financials - ALL Financials have a Regulatory component through Taxes and other aspect like Labor / Employment and other rules in your specific Industry - SEC / FINRA, Banking Et. al...
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