East Idaho Times

U.S. Senators Jim Risch and Tommy Tuberville have introduced the Repealing Big Brother Overreach Act, aiming to overturn the Corporate Transparency Act (CTA). The senators argue that the CTA imposes excessive federal reporting requirements on small business owners.

The CTA mandates that individuals with an ownership interest in a business disclose personal information to the U.S. Treasury Department’s Financial Crimes Enforcement Network (FinCEN). Non-compliance could result in penalties, including fines up to $10,000 per violation and imprisonment for up to two years.

Senator Risch stated, “Idaho’s favorite mom-and-pop shops are vital to our economy, but they cannot succeed when burdensome federal regulations require them to divulge private information.” He added that the new legislation aims to rescind the "overbearing" CTA and reduce government interference in small businesses.

Senator Tuberville emphasized the importance of small businesses by saying, “Small businesses are the backbone of our economy.” He criticized current economic policies and added, “This unprecedented intrusion into personal privacy is something you’d expect in Communist China, but not in the United States of America.”

Implementation of the CTA was scheduled for January 1, 2025. However, it has been paused due to legal challenges. The U.S. Court of Appeals for the Fifth Circuit upheld an injunction against its implementation. The Biden Justice Department appealed this decision to the U.S. Supreme Court, which has agreed to hear the case.