Thaler urges budget leaders to protect CUs’ tax-exempt status
Oct. 24, 2013 – Ahead of a House-Senate budget conference due to take place Oct. 30, NAFCU Vice President of Legislative Affairs Brad Thaler is urging the budget committee chairmen from both chambers to oppose any efforts to alter the credit union tax exemption.
“As not-for-profit cooperatives with more than 96 million member owners, credit unions provide local communities with basic financial service products and have an outstanding record of serving Main Street America,” Thaler wrote Wednesday in a letter to Senate Budget Committee Chairman Patty Murray, D-Wash., and House Budget Committee Chairman Paul Ryan, R-Wis. “Any effort to impose any new tax on credit unions would strike at the very core of how credit unions have operated since their inception and would have a negative impact on credit union members, other consumers, small businesses and the larger economy.”
Ryan, Murray and the other conference members are to come up with a budget resolution by Dec. 13. They are expected to discuss entitlement, tax reform and spending cuts. The Hill reports that the House and Senate are $91 billion apart on their preferred top-line numbers for the budget. The budget conference could also pave the way for passage of another debt ceiling increase by Feb. 7.
In his letter to the budget leaders, Thaler also pointed to the economic study NAFCU released last year on the credit union tax exemption. That study shows the cumulative benefit credit unions provide to the economy totals more than $10 billion a year. “Eliminating the credit union tax exemption would result in the loss of 150,000 jobs a year, a shrinking of the GDP and a net loss of revenue to the federal government,” Thaler wrote.
NAFCU's economic study on credit unions' tax exemption
NAFCU letter to Importance of Credit Unions to our Nation's Economy (10-23-13)
The Hill article