WASHINGTON, D.C. (April 29, 2024) – The National Federation of Independent Business (NFIB), the nation’s leading small business advocacy organization, expressed its support for legislation introduced by Sen. Tommy Tuberville (AL) and Rep. Warren Davidson (OH-08) to repeal the Corporate Transparency Act (CTA). The legislation aims to relieve small businesses from burdensome reporting requirements related to beneficial ownership information.
Jeff Brabant, NFIB Vice President of Federal Government Relations, highlighted the significance of repealing the CTA, stating, "Repealing the Corporate Transparency Act is welcome news to small business owners, as the Act contained one of the largest and intrusive pieces of legislation affecting the small business economy in generations." Brabant emphasized the unfavorable implications of the Act on small business owners, noting that it subjects them to penalties for minor paperwork violations and allows extensive access to their private information by law enforcement entities.
The CTA, which became effective on January 1, 2024, mandates that certain entities report their beneficial ownership information to FinCEN. NFIB has been a vocal opponent of this requirement, advocating strongly for its repeal. The organization has stressed the detrimental impact of the Act on small businesses, estimating that it will affect millions of small enterprises annually.
In light of the challenges posed by the Corporate Transparency Act, NFIB commended Senator Tuberville and Representative Davidson for their efforts in introducing legislation to rescind the Act. Brabant remarked, "The Corporate Transparency Act is beyond repair, and NFIB applauds Sen. Tuberville and Rep. Davidson for introducing legislation to repeal it."
This development reflects the ongoing advocacy by small businesses and their representatives to alleviate regulatory burdens and promote a more favorable environment for entrepreneurial endeavors.
