Newsroom
April 26, 2017
Berger touts benefits of tax-exempt CUs as White House turns to tax reform
NAFCU President and CEO Dan Berger reiterated the economic value of the credit union federal corporate income tax exemption Wednesday as the Trump administration announced key principles for tax reform.
"NAFCU supports efforts to achieve reforms that will grow the economy, and a vital part of that should be preservation of credit unions' contributions to economic growth," said Berger. "We will remain engaged with the administration and Congress throughout the tax reform debate to ensure credit unions are protected in this process."
Berger touted the independent study NAFCU commissioned earlier this year, which showed the benefit to U.S. consumers from the tax exemption is $16 billion per year. This adds up to $159 in growth over a 10-year period. Eliminating the exemption would cost the federal government $38 billion in lost income tax revenue and shrink the gross domestic product by $142 billion, eliminating nearly 900,000 jobs in 10 years.
"NAFCU stands ready to support reforms that grow the economy, preserve credit unions' ability to serve their more than 106 million members nationwide, and protect credit unions' ability to continue to make a positive contribution to the U.S. economy," Berger continued.
NAFCU Vice President of Legislative Affairs Brad Thaler also touted the economic benefits of the tax exemption in a letter Wednesday sent to the leadership and members of the House and Senate as they prepare to consider the Trump Administration's tax reform principles.
The Trump administration on Wednesday released a one-page overview of its tax reform principles.
The reform overview emphasized the importance of simplifying the tax code, creating jobs and providing tax relief for middle-income families. NAFCU staff will monitor the administration's progress in developing the plan and will remain vigilant in protecting the credit union tax exemption.
"NAFCU supports efforts to achieve reforms that will grow the economy, and a vital part of that should be preservation of credit unions' contributions to economic growth," said Berger. "We will remain engaged with the administration and Congress throughout the tax reform debate to ensure credit unions are protected in this process."
Berger touted the independent study NAFCU commissioned earlier this year, which showed the benefit to U.S. consumers from the tax exemption is $16 billion per year. This adds up to $159 in growth over a 10-year period. Eliminating the exemption would cost the federal government $38 billion in lost income tax revenue and shrink the gross domestic product by $142 billion, eliminating nearly 900,000 jobs in 10 years.
"NAFCU stands ready to support reforms that grow the economy, preserve credit unions' ability to serve their more than 106 million members nationwide, and protect credit unions' ability to continue to make a positive contribution to the U.S. economy," Berger continued.
NAFCU Vice President of Legislative Affairs Brad Thaler also touted the economic benefits of the tax exemption in a letter Wednesday sent to the leadership and members of the House and Senate as they prepare to consider the Trump Administration's tax reform principles.
The Trump administration on Wednesday released a one-page overview of its tax reform principles.
The reform overview emphasized the importance of simplifying the tax code, creating jobs and providing tax relief for middle-income families. NAFCU staff will monitor the administration's progress in developing the plan and will remain vigilant in protecting the credit union tax exemption.
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