Newsroom
January 06, 2016
NAFCU vigilant on CU tax exemption
NAFCU lobbyists note that while no lawmaker in this Congress has proposed legislation that would alter credit unions' federally tax-exempt status, this election year brings new possibilities, and NAFCU remains hyper vigilant in its focus on preserving the exemption.
"We are engaged on all fronts of the tax reform debate," said NAFCU Vice President of Legislative Affairs Brad Thaler. "NAFCU has, among other things, worked closely with lawmakers – including through the financial reform debate following the housing downturn – to ensure credit unions aren't lumped into any provisions for new financial institution taxes."
This year's tax-reform proposals could take many forms. For example,Rep. Devin Nunes, R-Calif., of the Ways and Means Committee, is expected to release a reform bill in coming weeks that could eliminate most deductions and credits from the current tax code. However, Nunes has long supported credit unions' tax-exempt status.
"We expect when that bill is introduced, credit unions will remain safe," said Thaler. He added that NAFCU continues keep lawmakers well apprised of the value of the credit union tax exemption – not only to credit union members, but to the overall economy and financial services consumers nationwide.
House Ways and Means Chairman Kevin Brady, R-Texas, indicated last fall that he wants to pursue broad tax reform following this year's elections. While that seems a way off, the panel reiterated that focus late last month, noting Brady's interest in crafting a "fairer fairer, flatter tax system with lower tax rates by closing deductions and loopholes enjoyed by individuals and businesses."
"We're staying in close contact with key players in both the House and Senate – and on Ways and Means – in our work to preserve credit unions' tax exemption," Thaler emphasizes. "If a threat arises, our members can be certain that we will respond quickly and directly to quash it."
Preserving the credit union tax exemption remains the association's top legislative priority. Learn more about NAFCU's 2016 top priorities.
"We are engaged on all fronts of the tax reform debate," said NAFCU Vice President of Legislative Affairs Brad Thaler. "NAFCU has, among other things, worked closely with lawmakers – including through the financial reform debate following the housing downturn – to ensure credit unions aren't lumped into any provisions for new financial institution taxes."
This year's tax-reform proposals could take many forms. For example,Rep. Devin Nunes, R-Calif., of the Ways and Means Committee, is expected to release a reform bill in coming weeks that could eliminate most deductions and credits from the current tax code. However, Nunes has long supported credit unions' tax-exempt status.
"We expect when that bill is introduced, credit unions will remain safe," said Thaler. He added that NAFCU continues keep lawmakers well apprised of the value of the credit union tax exemption – not only to credit union members, but to the overall economy and financial services consumers nationwide.
House Ways and Means Chairman Kevin Brady, R-Texas, indicated last fall that he wants to pursue broad tax reform following this year's elections. While that seems a way off, the panel reiterated that focus late last month, noting Brady's interest in crafting a "fairer fairer, flatter tax system with lower tax rates by closing deductions and loopholes enjoyed by individuals and businesses."
"We're staying in close contact with key players in both the House and Senate – and on Ways and Means – in our work to preserve credit unions' tax exemption," Thaler emphasizes. "If a threat arises, our members can be certain that we will respond quickly and directly to quash it."
Preserving the credit union tax exemption remains the association's top legislative priority. Learn more about NAFCU's 2016 top priorities.
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