Nov. 20, 2012 – NAFCU is urging members to contact lawmakers during the Thanksgiving recess to build support for preservation of credit unions’ federal income tax exemption, enhanced member business lending authority and other measures that may be addressed during the lame-duck session.
The credit union industry was reminded what is at stake when legislation was unveiled last week by Rep. Dennis Ross, R-Fla., that would have phased-out the credit union tax exemption over a five-year period. After NAFCU lobbyists met with Ross’ office, it was confirmed that the plan to include the exemption was in error and would be withdrawn from future efforts.
While NAFCU will continue to remain vigilant in ensuring the credit union tax exemption stays intact, the incident underscores the need for members to keep educating lawmakers about its value. NAFCU is encouraging members to share a study commissioned by the association that shows the exemption benefits all Americans, not just credit union members. It also indicates that eliminating the exemption would, over the next decade, cost the federal government $15 billion in lost tax revenue; slow economic growth, or GDP, by $148 billion (in 2010 dollars); and result in 1.5 million lost jobs.
NAFCU is also urging members to contact senators about:
- S. 2231, raising the member business lending cap: Senate Majority Leader Harry Reid, D-Nev., has said that a vote would take place this year.
- S. 3204 and S. 3394, ATM fee disclosures and privileged information: The legislation would eliminate the duplicative requirement to affix a placard on ATMs regarding fees but retain the requirement that consumers accept the fees on screen or cancel their transactions. S. 3394 would also ensure that information financial institutions share with the Consumer Financial Protection Bureau remains confidential.
- S. 3468, regulatory cost/benefit analyses: The measure would authorize the president to require all independent agencies, including NCUA, to comply with executive orders for such analyses of proposed rules.
- Defense authorization: The legislation includes provisions that would affect all credit unions with any servicemembers in their membership. The House has already passed a defense authorization bill, but the Senate has yet to do so. Floor consideration is expected next week.
NAFCU members can get more information on these key issues and find links to take action by visiting the association’s website.