NCLA Amicus Brief Asks Supreme Court to Keep Unlawful Corporate Transparency Act Enjoined

Core Viewpoint - The New Civil Liberties Alliance (NCLA) is urging the U.S. Supreme Court to reject the government's request to stay a preliminary injunction against the enforcement of the Corporate Transparency Act (CTA), which is argued to be unconstitutional and beyond the authority of Congress and the Administrative State [1]. Group 1: Corporate Transparency Act (CTA) Overview - The CTA requires organizations that have incorporated under state law to submit detailed reports containing sensitive information to the Department of the Treasury, with civil or criminal penalties for non-compliance affecting over 30 million nonprofit and for-profit organizations nationwide [2]. - The government claims that the CTA is authorized by the Constitution's Commerce Clause, but the act does not regulate actual economic activity, as it only requires disclosure upon incorporation, which is not considered economic activity [3]. Group 2: Legal Arguments Against the CTA - The government's argument that most organizations will engage in future economic activity does not justify regulation under the Commerce Clause, as established in the Supreme Court's ruling in NFIB v. Sebelius [3]. - The government's request to limit the preliminary injunction to only the corporate entities involved in the Texas Top Cop Shop case is flawed, as the Administrative Procedure Act allows for a nationwide postponement of the Treasury Department's rule enforcing the CTA [4]. Group 3: NCLA's Position - NCLA emphasizes that if the mere potential for commerce is used as a basis for regulation under the Commerce Clause, it would lead to limitless governmental power, undermining the concept of limited government [5].