Young, Tuberville Reintroduce Legislation to Repeal Corporate Transparency Act, Protect Small Businesses
WASHINGTON – U.S. Senators Todd Young (R-Ind.) and Tommy Tuberville (R-Ala.) reintroduced the Repealing Big Brother Overreach Act, legislation to overturn the inaptly named Corporate Transparency Act (CTA) and protect small business owners. The CTA requires individuals with an ownership interest in a limited liability company (LLC) to disclose personal data with the U.S. Treasury Department’s Financial Crimes Enforcement Network. Failure to comply could result in up to two years of jail time and a $10,000 fine per violation.
CTA requirements went into effect on January 1, 2024, but implementation is currently paused while the legality of the CTA’s requirements is being argued in the federal courts. The U.S. Court of Appeals for the Fifth Circuit upheld a nationwide injunction on CTA implementation, but President Biden’s Justice Department appealed the decision to the Supreme Court, which the Court has agreed to hear.
“Current government reporting requirements are increasing costs for small businesses and adding unnecessary strain. Our bill will stop this bureaucratic overreach,” said Senator Young.
“Small businesses are the backbone of our economy,” said Senator Tuberville. “Small business owners are the ultimate job creators, yet they have been crushed by four years of Joe Biden’s disastrous economic policies. They need less government regulation, not more. The CTA requirements that dictate they must share personal data or pay a fine and spend time in jail does nothing but stifle increased economic growth. This unprecedented intrusion into personal privacy is something you’d expect in Communist China, but not in the United States of America. I’m thankful that the Supreme Court is now deciding the legality of the CTA requirements, but we need to ensure that our business owners never have to worry about this again. I am proud to be partnering with Congressman Warren Davidson in reintroducing this legislation to repeal the Corporate Transparency Act and cut bureaucratic red tape for our small business owners.”
Congressman Warren Davidson (R-OH-08) led companion legislation in the U.S. House of Representatives.
The Repealing Big Brother Overreach Act is supported by more than 100 trade organizations, including the National Federation of Independent Business and Americans for Tax Reform.