Mulligan Testimony

Summary

Written opening testimony of Casey Mulligan, Professor of Economics at The University of Chicago and nominee for Chief Counsel of the Office of Advocacy at the Small Business Administration, addressed to Chair Ernst and Ranking Member Markey. He thanks the committee and describes his experience with small businesses and regulators. He states three priorities if confirmed: listening to small businesses through Advocacy's Regional Outreach office, monitoring and enhancing agency compliance with the Regulatory Flexibility Act, and producing data on small businesses through the Office of Economic Research. The testimony quotes the Office of Advocacy's primary functions under 15 USC 634b(1) and states his support for an independent Office of Advocacy.

Summary drafted by a model from the document's text below and checked by script against that text before publication. It is a navigation aid, not a reading of what the document proves. Where AI is used

Full text

                                       Casey Mulligan
                    Professor of Economics, The University of Chicago
    Nominee, Chief Counsel of the Office of Advocacy at the Small Business Administration



Chair Ernst, Ranking Member Markey, distinguished members of the committee: thank you for
the opportunity to appear before you today. My wife Julia and three of our children have joined
us for a front-row view of part of the system of checks and balances. I appreciate their support
and sacrifices as Dad served, and hopes to serve again, in government during such partisan times
in our nation’s history.
I’m grateful and honored by President Trump’s nomination to join a team committed to replacing
government overreach with common-sense leadership.

I have always lived in Illinois, except for 5 years living in the ranking member’s state and one year
here in Washington. After I was about three years’ old, my parents’ sole source of income was the
small software business that my father co-owned and managed. My uncle also worked most of his
career in that business. My mother and I worked there at times.

In my current capacity as the owner of small businesses, I am too familiar with uncompromising
regulators. Agencies can shut down businesses, or short of that, cause exasperated owners to hand
things over to a big corporation.

I file at least 10 payroll-related forms annually. It seems like as soon as one is mailed out, the IRS
wants another one. With a check attached, of course.

I got one of my biggest accounting bills ever to comply with Treasury’s Beneficial Ownership
Interest requirements. Considering the relief that Treasury just put in place, maybe that wasn’t
necessary, but previously all of America’s small businesses were threatened with monetary and
criminal penalties.
One of my early projects was commissioned by family farmers in Central Illinois. They needed a
look at the economic effects of eminent domain because the state was using that authority for
private purposes. I testified about that at the Illinois Commerce Commission.

My late father-in-law started an oyster farm, now run by our nephew. Uncompromising regulators
loom large there, always shifting attention and resources away from the shellfish and the customers
toward hiring lawyers and experts. Once, the farm had to prove that the regulators don’t know
how to measure nitrogen in the water. Another time, it was to refute the government’s false claim
that the land under the water is not our land.

I have met and listened carefully to the advice and insights of every Chief Counsel from the past
30 years. If confirmed, my priorities for the Office of Advocacy are three. The first is to listen to
small businesses, especially with Advocacy’s Regional Outreach office. Second, monitor and
enhance agency compliance with the Regulatory Flexibility Act. Third, produce and curate data
on small businesses through the Office of Economic Research.

Rigorous measurement of economic activity broadly, and the small-business situation specifically,
is something I have done throughout my career as an economics professor. I have also published
extensively on regulatory economics. Congress itself calls for economic expertise at the Office of
Advocacy by designating the first of its primary functions to examine “the contribution which
small business can make in improving competition, encouraging economic and social mobility for
all citizens, restraining inflation, spurring production, expanding employment opportunities,
increasing productivity, promoting exports, stimulating innovation and entrepreneurship….” 15
USC 634b(1).

I strongly support Congress’ approach of creating an independent Office of Advocacy and other
elements of the Regulatory Flexibility Act to ensure that concerns of, and costs imposed on, small
businesses receive significant weight in regulatory decisions. Advocacy’s Regional Outreach is
vital because the power to regulate is centralized in Washington, but knowledge about constituents’
circumstances lies outside that bubble.

While the RFA exists on paper, too often small businesses are getting ambushed. Too many rules
are imposed without engaging or even notifying them. The RFA has rules for regulators to follow,
but often their attitude is “Rules for THEE but not for ME.”

The law requires keeping small businesses in the loop. It requires reviewing old rules for their
effect on small business. Agency compliance with the RFA does not need many resources,
particularly when there is an Advocacy Office ready to help, supported by Congress and the White
House.

There is a misconception, founded on the notion that America’s elite knows what’s good for the
rest of us, that listening to small entities runs counter to health and safety. Regulated entities have
valuable situational knowledge that, when considered, can enhance health and safety.

Small businesses also need regulatory solutions that last beyond a single presidential term. They
appreciate that the 115th Congress and President Trump used the Congressional Review Act a
record number of times. This Congress has gotten off to an even faster start. For my part, I look
forward to working with this committee and anyone else in Congress developing legislation to
help agencies achieve their missions at less cost to small businesses. I also pledge to keep you
apprised of the concerns expressed during the regional outreach process.

I thank the committee for its consideration. I welcome your questions and would be honored to
earn your support to serve as the next Chief Counsel of the Office of Advocacy at the SBA.


File and source

File

Mulligan_Testimony.pdf

Size

64,573 bytes

SHA-256

551ae5f5ac24ac9c9954bffa8c8b61f2402e1c8131254de64f5d7c41d9bb6031

Our copy

Mulligan_Testimony.pdf

Original

No public link identified.