Leader McCarthy Talks Innovation on CNBC
Washington, D.C. – House Majority Leader Kevin McCarthy (CA-23) appeared on CNBC’s Squawk Alley today to talk about the Innovation Initiative and the importance of regulatory reform to bring down costs for the American people.
Full remarks are below, or watch online here.
On how House Innovation Initiative bills save money and help workers:
“This is just part of the Innovation Initiative, things that we have been doing all year. This is about job creation… Innovation also saves money in government. Take for instance just two bills we have up this week. IT reform by Congressman Will Hurd. Government spends $80 billion on IT. Eighty percent of that is spent on maintaining legacy systems. And if we reform government and IT, it makes it more efficient, more effective, smaller, and costs less.
“Then, when you think of new start-ups being able to attract the very best of employees, well, they could be a private company, but if you own less than 1% [of the stock in that company], why shouldn’t those employees be getting a piece of this? But taxes make them not want this. So tax deferring until they go public or seven years gives [employees] the option to have ownership and attracts more people to have a piece of the pie.”
On how regulations hold back innovation and have increased the costs of the EpiPen:
“Regulations are important, but you’ve got to have common sense. When you look at the EpiPen problem, there’s two problems here: One, the company, and one the regulation of the FDA, because that’s a generic. But you know what? They’ve got a patent on the procedure of putting it in, the pen. But because of FDA and the slow movement of that, they get a monopoly on this, and you’re not allowing a new company in.
“This is where regulation is holding back. In my own family we need EpiPens, and the cost has gone up. But FDA’s regulation has stopped innovation, which would bring greater competition and bring that cost down. So, yes, we need it, but we need government to work effectively.”