Rep. Davidson, Sen. Tuberville Reintroduce Bill to Free Small Businesses from Invasive Overreach  As we’ve reported, the Corporate Transparency Act (CTA) requires owners of America’s 33 million small businesses to report detailed personal data on anyone with at least a 25 percent stake in their company. This law represents that most dangerous of all mixtures – overreach and nonsense. The stated purpose of this law is to catch crooks. So the ownership disclosure requirement in effect says: “Dear Terrorist (or Cartel Member or Money Launderer), would you kindly tell us who owns at least 25 percent of your company? Having this information would make building a case against you so much easier. So please check this box if you’re a criminal – Sincerely, the Feds.” Such unassailable logic reminds us of the old standup routine that advises people to check their closets before bedtime for a possible axe murderer while he’s still hiding. Do that and you will be safe... somehow. Fortunately, CTA’s days may be numbered. Rep. Warren Davidson (R-OH) has re-introduced what he calls the “Repealing Big Brother Overreach Act.” (A better name might be “Repealing the ‘Do You Think Criminals Are That Stupid Act’?”) Not only does the Corporate Transparency Act fail to accomplish what it sets out to do (catch criminals), it also targets a completely irrelevant group in the process – the average American small business owner, forcing him or her to register with a massive federal database that can be accessed without a warrant. Your local barbershop, accountant’s service, and gym are the targets. Big businesses, financial entities, and more are exempt from CTA’s provisions, which only threatens small business owners with large fines and two years in prison if they don’t comply. It doesn’t make sense that you can stop terrorists, drug dealers, and money launderers by going after honest small businesses. If this “beneficial ownership” provision ever went into effect, it is highly likely that the first fines and prosecutions would be against honest business owners who missed the filing deadline rather than a terrorist or money launderer. PPSA believes that the government’s insatiable hunger to track ordinary Americans is the real intent behind this law. This is all in keeping with the recent extension of surveillance over Americans’ financial transactions. In the meantime, and thanks to a flurry of back-and-forth court rulings (see our filing before the 11th Circuit Court of Appeals) as well as new guidance from the Treasury Department, reporting beneficial ownership information is currently voluntary. As of today, no penalties will be associated with failing to report. Treasury is also recommending a rule revision that limits the reporting requirements to foreign entities only. The stars seem to be aligning in favor of Rep. Davidson’s bill, with Alabama Republican Tommy Tuberville sponsoring it in the Senate. If this bill makes it to the Resolute Desk, President Trump is all but certain to sign it. But now is the time to keep the pressure on. Let your representatives in the House and Senate know that you support the “Repealing Big Brother Overreach Act.” Comments are closed.
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