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A House Ways and Means Committee hearing last Thursday examining charitable tax deductions featured plenty of discussion about tax code reform, and NAFCU is staying close to lawmakers and their staffs in its efforts to ensure preservation of the credit union federal income tax exemption.

Preserving the credit union exemption is the association's top priority. (See NAFCU's landmark study on why the exemption benefits all Americans and share it with lawmakers.) NAFCU is closely monitoring all tax reform discussions, but especially those taking place in the House Ways and Means Committee, which has previously signaled plans to advance a tax reform bill to the House Floor for a vote by the summer, and the Senate Finance Committee.

The Ways and Means Committee, chaired by Rep. Dave Camp, R-Mich., is breaking up its review of the tax code into 20 different sections.

Last week, the panel heard testimony from organizations and groups that are largely funded by charitable deductions. There was no indication where the committee may go regarding the future of these organizations' tax-exempt status. However, Camp did note that charities and foundations perform valuable services, especially in times of high unemployment. Rep. Dave Reichert, R-Wash., the lead Republican on the committee's working group examining tax-exempt charitable groups, also said he is looking forward to examining these issues in further detail.

Camp also reiterated that he wants the tax code to be simpler, fairer and easier to comply with.

Last month, Camp released a draft bill last month on reform of the tax treatment of complex financial instruments, part of a larger effort to secure comprehensive corporate tax reform.

• NAFCU tax exemption study