Newsroom

January 04, 2017

NAFCU to 115th Congress: CU tax exemption is top priority

NAFCU President and CEO Dan Berger emphasized the importance of preserving the credit union tax exemption in a letter to House and Senate leaders Tuesday, which laid out the association's top legislative priorities for 2017.

Berger said the preservation of the tax exemption would continue to be NAFCU's top priority during the 115th Congress, which opened this week.

"Altering the tax status of credit unions would have a devastating impact not only on credit union members across the country, but also on consumers and small businesses in general," Berger wrote in a letter to Senate Majority Leader Mitch McConnell, R-Ky., Senate Minority Leader Chuck Schumer, D-N.Y., House Speaker Paul Ryan, R-Wis., and House Minority Leader Nancy Pelosi, D-Calif.

"Eliminating the credit union tax exemption would result in the loss of 150,000 jobs per year, a shrinking of the GDP, and a net loss of revenue to the federal government," he continued. "As Congress prepares to tackle tax reform, we urge you to continue to support the credit union tax exemption."

Berger noted that NAFCU will also continue to push for regulatory relief for credit unions from the CFPB and for the elimination of the Durbin amendment. He also touted the importance of protecting credit union interests during the housing finance reform debate and the establishment of a strong national data security standard for retailers.

Berger also noted NAFCU's plans to push for the increase or elimination of the arbitrary member business lending cap, more flexibility for credit unions to determine their field of membership, and the creation of a fair risk-based capital system for credit unions.

A full list of NAFCU's top 2017 priorities is available in a special issue of UPDATE, released Tuesday.

Berger and other senior staff were on Capitol Hill Tuesday, touting credit unions' interests and welcoming new and returning legislators as they were sworn in. NAFCU staff met with a number of legislators; more information and a picture slideshow is available here.