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You wrote: Sarbox has driven up audit costs for startups as well. That's exactly what legislators and regulators in DC never seem to understand. Every poli
by Perceval 17y ago
You wrote:
Sarbox has driven up audit costs for startups as well.
That's exactly what legislators and regulators in DC never seem to understand. Every politician repeats bromides about the small businesses and how they're the engine of growth in this country. And then they make it impossible to be a small business by raising barriers to entry through fee after fee and regulation after regulation. Big companies don't care, because they would rather pay the government than face competition.
From the article:
Larger firms lobbied for passage of the act,
figuring they could absorb the costs that would
hobble smaller competitors - which is just what happened.
This is what happens with every major piece of economic regulation going back to the New Deal. Well-intentioned legislators regulators aim to constrain big business, but end up choking small business.
- grellas 17y agoSecurities laws generally would have choked small-business capital formation when first enacted but for the fact that broad categories of "exemptions" were recognized that essentially allowed private placements to continue without being burdened by onerous disclosure and registration requirements. Attempts are afoot to get a comparable carve-out from Sarbanes-Oxley's most burdensome requirements for small-cap public companies but these have stalled to date as the regulatory impulse continues unabated in today's Washington.