There's also probably a lot of big inductry people who love existing regulation mazes, since it blocks any newcomers from their cornered markets.

That I completely agree with, there's a lot of lobbying done to obfuscate regulations and tax code for that reason, and it should be dealt with. I was merely pointing out that it's not just a binary issue, like the proposals in the .pdf suggests.

Yes, this is the real reason for lot of regulations. Big Companies lobby for certain kind of regulations mainly to:

Squeeze the SMB and make it harder for new business to enter and survive in the market.