Various news outlets are reporting that a federal judge in Alabama has ruled that the Corporate Transparency Act is unconstitutional. According to the AP, U.S. District Judge Liles C. Burke decided in early March that the Corporate Transparency Act (CTA) is unconstitutional on the grounds that Congress exceeded its powers in enacting the law and any rulemaking stemming from it is unlawful. The case was originally filed by the National Small Business Association in 2022. The WSJ says NSBA argued the bill was unconstitutional because it infringes on protected rights of state sovereignty, privacy and due process. Indeed…
“…Judge Burke raised questions about the corporate formation requirements imposed by the bill, a process which is usually left to state governments, and noted that the law applies to corporate entities even if the entity conducts businesses only within a single state or does no business at all. The judge added that the CTA’s ownership disclosure requirements gave the government “unfettered legislative power.” From the Wall Street Journal
Charles Tassell, COO of National REIA said the following in a statement:
Charles Tassell
“U.S. District Judge Liles C. Burke, correctly struck down the police state overreach of the Corporate Transparency Act. The complete disregard for state autonomy or even lip service to the commerce clause loophole reveals a deep disregard for the historic Constitutional checks and balances. The effort to address money laundering, while laudable is misplaced and excessive as it destroys all privacy with little to no proof of need for a new law.” Said Charles Tassell, COO of National REIA in a statement.
Various news outlets are reporting that a federal judge in Alabama has ruled that the Corporate Transparency Act is unconstitutional. According to the AP, U.S. District Judge Liles C. Burke decided in early March that the Corporate Transparency Act (CTA) is unconstitutional on the grounds that Congress exceeded its powers in enacting the law and any rulemaking stemming from it is unlawful. The case was originally filed by the National Small Business Association in 2022. The WSJ says NSBA argued the bill was unconstitutional because it infringes on protected rights of state sovereignty, privacy and due process. Indeed…
