Nov. 15, 2012 – After meeting Wednesday afternoon with NAFCU lobbyists, the office of Rep. Dennis Ross, R-Fla., agreed to drop plans to phase out the credit union federal tax exemption from a bill authored by the congressman that also targets 28 other federal tax expenditures.
Ross’ office told NAFCU that the credit union federal tax exemption was included in error as part of H.R. 6474, the House version of a package of various Simpson-Bowles provisions recommended in connection with tax reform and deficit reduction. His office said the credit union federal tax exemption is something Ross wants to be maintained and that it will work to fix this mistake in the bill going forward.
Brad Thaler, NAFCU’s vice president of legislative affairs, thanked Ross and his staff for responding so quickly. “Rep. Ross has been and remains a strong supporter of credit unions," he said. "We appreciate his and his staff’s openness in discussing our concerns and for acting so quickly to make this correction.”
Specific language of the bill had called for the credit union exemption to be phased out over a five-year period from 2013 through 2017. A landmark study released by NAFCU in September shows eliminating credit unions’ exemption from federal corporate income tax would cost consumers billions of dollars and reduce federal revenues.
Ross has been a friend to credit unions on key issues. For example, he is a cosponsor of the proposed member business lending cap increase as well as legislation to ensure fairness in federal examinations of financial institutions.