FOR IMMEDIATE RELEASE Dec. 12, 2022
WASHINGTON, D.C. – The Main Street business community has voiced its support for the National Small Business Association’s (NSBA) lawsuit challenging the constitutionality of the Corporate Transparency Act (CTA). The letter was signed by more than 41 trade associations, including the International Franchise Association, National Roofing Contractors Association and the Real Estate Roundtable. Together with NSBA, this broad, wide-ranging coalition represents businesses from every state and every sector of the economy.
“The CTA is nothing more than big banks trying to shirk their responsibility onto small business,” said NSBA President and CEO Todd McCracken. “Rules already exist that require banks to monitor and report suspicious activities to FinCEN, they simply don’t want to do it anymore.”
NSBA has filed a constitutional challenge to the CTA, alleging that that it infringes on the States’ sovereign powers over the formation of entities, exceeds Congress’s power to regulate commerce, is unconstitutionally vague, and infringes upon an individual’s rights to apply for, form, own, and provide for the self-governance of entities under State law.
The CTA is a poorly thought out and heavy-handed federal mandate that will be a bureaucratic nightmare for small-business owners who will be forced to spend millions of hours and billions of dollars on paperwork instead of creating jobs and helping grow our economy. Under the CTA, the federal government is creating a national registry that would require small-businesses owners to submit detailed personal information to the Treasury Department’s financial intelligence unit-- FinCEN.
“The stated goal of the CTA is to crack down on criminals who use shell companies to launder money, however it relies entirely on bad actors self-reporting their crimes,” stated Brian Reardon of the S Corporation Association. “Not only will the CTA be a massive burden on small companies, it will be wholly ineffective at stemming money laundering.”
Please click here to read the letter and learn more.
Celebrating more than 85 years in operation, NSBA is a staunchly nonpartisan organization advocating on behalf of America’s entrepreneurs. NSBA's 65,000 members represent every state and every industry in the U.S., and we are proud to be the nation’s first small-business advocacy organization. Please visit www.nsba.biz or @NSBAAdvocate.