The US Chamber of Commerce’s recent small business survey found that Washington policies hamper job growth, with over a quarter of small businesses saying they have lost employees in the past year.

According to the survey, the Affordable Care Act (Obamacare) is a top concern increasing by 10% since June 2011. Seventy-one per cent of small businesses say the health care law makes it harder to hire, and only 30% say they are prepared for the requirements of the law. Among the small businesses that will be impacted by the employer mandate to provide health care insurance for employees, one-half say they will either cut hours to reduce the number of full-time employees or replace full-time employees with part-time workers.

The survey also said small businesses are looking to legislative solutions with 42% expressing concern that too many government regulations are adversely impacting business and want Congress to remove barriers to encourage growth. Reform to the tax code is supported by 83% with the majority supporting a less complex tax code.

The biggest group of small businesses would like to see an easing of regulations of the US Environmental Protection Agency.

The only thing that scares small business more than what the federal government has done is what the federal government will do next.