NCLA Amicus Brief Asks Fifth Circuit to Uphold Block on Unconstitutional Corporate Transparency Act

Core Viewpoint - The New Civil Liberties Alliance (NCLA) is advocating for the rejection of the government's request to stay a preliminary injunction against the enforcement of the Corporate Transparency Act (CTA), arguing that the statute is unconstitutional and exceeds Congress's regulatory authority [1]. Group 1: Corporate Transparency Act (CTA) - The CTA requires organizations that have incorporated under state law to submit detailed reports containing sensitive information to the Department of the Treasury, with penalties for non-compliance [2]. - The requirements of the CTA apply to both non-profit and certain for-profit organizations, regardless of their involvement in commercial transactions or economic activities [2]. Group 2: Legal Arguments Against CTA - The government is unlikely to succeed in claiming that the CTA falls under Congress's regulatory power as per the Commerce Clause, as the act of incorporation itself is not considered economic activity [3]. - The Supreme Court has established that regulation cannot be justified based on anticipated future economic activity that has not yet occurred [3]. Group 3: NCLA's Position - NCLA argues that the federal government cannot regulate the creation and existence of corporate entities based on the assumption that they will engage in commerce in the future, drawing a parallel to the regulation of individuals based on their birth [4].