Nov. 14, 2012 – A bill that would phase out the credit union federal tax exemption and 28 other federal tax expenditures was introduced in the House just before Congress’ break for the elections and – while specific language had not been released at the time – referred to four House committees.
The bill, H.R. 6474, is the House version of a package of Simpson-Bowles provisions recommended as part of a broad plan to reform the tax code and rein in the federal budget. The proposed, complete phase-out of certain tax expenditures, including the credit union exemption, would be accomplished from 2013 through 2017. The bill was introduced by Rep. Dennis Ross, R-Fla., and has no cosponsors. No action has been slated so far.
A landmark study released by NAFCU this September shows eliminating credit unions’ exemption from federal corporate income tax would cost consumers billions of dollars and reduce federal revenues. [NAFCU’s Tax Exemption Study can be found here.]
NAFCU lobbyists are meeting with Ross’s office today. 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.