Op-ed urges lawmakers to end onerous reporting requirements for Main Street
WASHINGTON, D.C. (Aug. 7, 2024) – The Washington Times published an op-ed from Jeff Brabant, NFIB’s Vice President of Federal Government Relations, highlighting the harmful impact of the Corporate Transparency Act’s (CTA) beneficial ownership (BOI) reporting requirements for small businesses. Brabant explains how the new mandate, which requires small business owners to register their personal information with the Financial Crimes Enforcement Network (FinCEN), places an unfair burden on Main Street businesses, with devastating consequences.
Read the full op-ed here: https://www.washingtontimes.com/news/2024/aug/6/congress-must-repeal-corporate-transparency-act-to/
Brabant writes:
“More than 32 million small businesses are facing potential ruin — not just of their livelihood but also of their personal freedom. By the end of this year, small business owners and their senior employees must register their personal information with the Financial Crimes Enforcement Network. If they don’t, they’ll face the loss of their business, criminal penalties and even jail time.
“Now, Main Street is paying the price. FinCEN estimates the mandate will cost small businesses more than $73.1 billion over 10 years. By contrast, when the banks had to do this reporting, it cost only $1.5 billion. That means the rule is over 48 times as burdensome for small businesses. Main Street pays massively more because small businesses don’t have nearly the same scale or efficiency as Wall Street banks. That’s why the mandate originally applied to banks — because they’re best able to do this work.
“This regulation will crush small businesses, either with costs or criminal penalties. The National Federation of Independent Business has found that 83% of small businesses don’t even know the rule exists. That puts them at risk of massive fines or even jail time. They shouldn’t have to fear that, nor should they have to comply with such a burdensome mandate in the first place. The Corporate Transparency Act must be repealed. It was poorly conceived and poorly written, and it’s already being poorly executed…The last thing that 32 million small businesses need is another costly mandate backed up by the threat of criminal penalties.”
NFIB supports the Repealing Big Brother Overreach Act, legislation that would repeal the CTA and relieve small businesses of the beneficial ownership requirements. In May, NFIB filed a lawsuit challenging the CTA. This lawsuit is pending.
