(TruthandLiberty.com) – In 2020, Congress spent nearly $4 trillion to bolster the economy during the pandemic. In 2021, Democrats spent an additional $2 trillion in a partisan COVID-relief package. Additionally, in November, President Biden signed a $2 trillion infrastructure bill into law. That doesn’t include the $120 billion per month the Federal Reserve injected into the economy. Due to their massive spending, the far-Left has been looking for ways to squeeze more money out of Americans.
Over the last six months, Democrats have floated all kinds of ideas, from increasing taxes on the wealthy to hiring thousands of IRS agents to find tax cheaters and recoup money for the government. In 2020, President Donald Trump signed the Corporate Transparency Act. Buried in it was a provision allowing the Treasury Department to create new rules to minimize how shell companies might be used to hide money from the government.
Now, It appears the Biden administration is finding new ways to implement some of their money-grabbing techniques through existing law.
Treasury Department Implements New Rules on Shell Companies
A shell company is a business that only exists on paper. Some are owned anonymously. Shell companies don’t have employees or physical offices. However, they’re likely to have bank accounts and may move passive investments such as cash, intellectual property, ships or real estate. In some instances, unscrupulous people have used shell companies to hide money from the government.
On Wednesday, December 8, the Treasury Department registered a proposed regulation under the Corporate Transparency Act. The Financial Crimes Enforcement Network is under the Treasury Department and would enforce the rules. The new code would strip shell companies of the ability to hide their owners by requiring registration with the federal government. The regulation would prevent individuals from hiding behind shell companies and other shady corporate structures to evade taxes and international finance laws.
Yellen Says the Rule Closes Loopholes That Benefit Tax Cheaters
Treasury Secretary Janet Yellen said the new beneficial ownership rule would close loopholes currently undermining US national security. In addition, the secretary said the regulation would increase economic fairness and protect the integrity of the US financial system by forcing the identification of individuals who own shell companies and have access to unclaimed assets.
The new rule would impact certain domestic and foreign companies. If an individual controls or owns a substantial stake in a shell company, at a minimum of 25%, they would be required to disclose their name, birth date, current address and state identification number.
The rule doesn’t apply to publicly traded companies subject to the rules and regulations of the Security and Exchange Commission or small businesses in the United States with more than 25 employees, a physical office and at least $5 million in gross revenues. The new rule excludes a broad range of trusts and limited partnerships.
It’s unknown when the policy will take effect. Public commentary is open until February 7.
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