Secretary of State Tre Hargett
Tennessee is the perfect place to do business. We have one of the best economic climates in America, a AAA bond rating, the second-lowest debt per capita in the entire nation, and a long history of fiscal responsibility that crosses party lines.
These are just a few areas where the Volunteer State stands out amongst its peers. Tennessee’s business stability, the steady flow of companies moving here, and the incredible quality of life our citizens experience emphasize the importance of low taxes and a predictable regulatory environment — unlike what we have seen in Washington, D.C., in recent years.
Federal mandates stifle environments where businesses would otherwise thrive, and bureaucratic red tape tends to hit Main Street harder than Wall Street. One recent example is the Corporate Transparency Act of 2021. This regulatory wreck was buried inside a massive bill and enacted without much thought or basis. It was pitched to combat money laundering, tax fraud, and other financial crimes while increasing transparency around business ownership.
Instead, the Beneficial Ownership Information reporting mandate created confusion for mom-and-pop businesses. This unnecessary regulation made them jump through hoops, like excessive paperwork, tracking down owner identification, and sharing massive amounts of personal information with the federal government. Many small businesses made good-faith efforts to comply to avoid exorbitant fines and potential jail time. Meanwhile, bad actors simply found loopholes to bypass requirements.
Thankfully, the U.S. Treasury Department recently announced it will not enforce penalties or fines against U.S. citizens or domestic reporting companies related to the Corporate Transparency Act or the associated Beneficial Ownership Information mandate. Many small businesses are still recovering from inflation, supply chain issues, and other regulatory mandates. Getting this regulatory wreck off the tracks is a great victory for Tennessee’s small businesses, as well as those across the nation.
Rules and regulations must be tailored to advance public interests while also ensuring businesses continue thriving — like we have seen here in Tennessee. I applaud Governor Bill Lee, Lieutenant Governor Randy McNally, Speaker Cameron Sexton, and the General Assembly for creating a predictable regulatory environment that continues paying dividends for Tennessee businesses, including the more than 405,000 businesses registered with our office. My continuing hope is that our leaders in Washington, D.C., will look more to Tennessee as an example of how government should work for the taxpayers and not the other way around.
Secretary of State Tre Hargett