NAFCU's Fred Becker said
credit unions need to engage
with lawmakers on tax
exemption, reg relief.
Feb. 22, 2013 – NAFCU President and CEO Fred Becker on Thursday called on members to press lawmakers on the importance of preserving the credit union tax exemption and enacting the regulatory relief measures outlined in the association’s five-point plan.
Becker noted the urgency of the situation. On Feb. 14, the House Ways and Means Committee announced the formation of 11 working groups on tax reform, and credit unions’ federal corporate income tax exemption could be addressed by at least two of these. Meanwhile, the Senate Finance Committee is also moving ahead with plans to tackle tax reform.
Value of the tax exemption
Preservation of the credit union tax exemption is a top priority for NAFCU, and the association is seeking grassroots support from members. Becker is encouraging members to download and use the data from NAFCU’s landmark tax exemption study, which shows that eliminating the credit union federal corporate income tax exemption would harm all Americans, not just credit union members. The study has state-specific information and analysis that can be utilized by credit unions from coast to coast.
5-point reg relief plan
When communicating with lawmakers, credit unions should also be sure to discuss the need for regulatory reform and share NAFCU’s five-point plan for credit union regulatory relief, Becker said. Winning lawmakers’ support for specific bills – including H.R. 688, the “Credit Union Small Business Jobs Creation Act”; H.R. 719, the “Capital Access for Small Businesses and Jobs Act”; and H.R. 749, the “Eliminate Privacy Notice Confusion Act” – “is critical in advancing this effort,” Becker said. NAFCU members can learn whether their representatives are cosponsors via NAFCU’s grassroots action center. (link)
Passage of each of the five points of the association’s regulatory relief plan, individually or as a whole, combined with preservation of the credit union tax exemption “will allow credit unions to continue to provide exemplary financial products to people from all walks of life,” Becker said.
In anticipation of Congress’ return next week, NAFCU on Thursday sent copies of the association’s study on the federal tax exemption and its five-point plan for credit union regulatory relief to lawmakers in both chambers.