🗄️ The U.S. Treasury Department vs Small Business Rule 🗄️
Here's a hot piece of news! The U.S. Treasury Department threw a curveball when it announced this Sunday that it will not enforce a Biden-era small business rule🔥.
🎯 The Aim of the Rule
The plan was to curb the formation of shell companies and combat money laundering, all via a beneficial ownership information database. But it seems like plans are changing now🔄!
🚫The Suspension
Thanks to the Treasury's new course of action, any business that's not registered on the database will not face penalties - both now and ever!
Despite attempts to scrap this rule in court by small businesses, it's still in place. It caught quite the attention as former President Trump referred to the database as “outrageous and invasive.” on his Truth Social media site.
📈 Impact on Small Businesses Nationwide 📈
This rule paints a gloomy picture for small businesses across the country. As of January 1, 2024, American businesses with <20 are="" business="" employees="" government.="" owners="" p="" register="" required="" the="" their="" to="" with="">
🔍 The Intent Behind the Rule
The motive behind the rule comes across as a noble cause – to target and expose shell companies notorious for hiding illegally obtained assets and associated trades🔍. These companies are usually characterized by very few employees.
The cost? Just about $85 per business. Quotes former Treasury Secretary Janet Yellen, stating that information from over 100,000 businesses had been registered as beneficial ownership information with the Treasury already.
⚖️ The Ongoing Litigation ⚖️
Despite the potential benefits for law enforcement, the rule and its legislative authority - the Corporate Transparency Act, has been stuck in court. The rule has faced opposition from privacy advocates and business leaders who believe it puts too much personal information at risk.
In short, the Treasury Department’s move is seen as a victory for small businesses across the country. To quote U.S. Secretary of the Treasury Scott Bessent, “Today’s action is part of President Trump’s bold agenda to unleash American prosperity by reining in burdensome regulations, in particular for small businesses that are the backbone of the American economy.”
🤔 Could this be a new dawn for small businesses, or does it open another avenue for corruption? Let's wait and watch! 🤔
📌 **More Insights & Video Summary** 📌 💡 Want a quick breakdown of this news? Watch our latest Shorts video now! 👉 [Watch the Video](https://youtube.com/shorts/plnYoZFxIy0)
