Newsroom
May 17, 2017
Hunt, writing lawmakers, touts importance of CU tax exemption
NAFCU Executive Vice President of Government Affairs and General Counsel Carrie Hunt highlighted the importance of the credit union tax exemption to the economy at large in a letter to House Ways and Means Committee leaders Wednesday.
Hunt wrote Committee Chairman Kevin Brady, R-Texas, and Ranking Member Richard Neal, D-Mass., in advance of today's hearing, "How Tax Reform Will Grow Our Economy and Create Jobs."
In her letter, Hunt 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, according to the findings.
"Simply put, the credit union tax exemption helps grow the greater economy and create jobs," Hunt wrote. "During the financial crisis, credit unions continued to lend to consumers and small businesses that were left behind by other lenders. Credit unions are pleased to play a key role in delivering growth and financial opportunity for all Americans."
The Trump administration in April released a one-page overview of its tax reform principles, which 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 is encouraging credit unions to reach out and ensure lawmakers understand the importance and value of credit unions' federal tax exemption to the nation's economy. To reach out to lawmakers by email, visit NAFCU's Grassroots Action Center.
Hunt wrote Committee Chairman Kevin Brady, R-Texas, and Ranking Member Richard Neal, D-Mass., in advance of today's hearing, "How Tax Reform Will Grow Our Economy and Create Jobs."
In her letter, Hunt 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, according to the findings.
"Simply put, the credit union tax exemption helps grow the greater economy and create jobs," Hunt wrote. "During the financial crisis, credit unions continued to lend to consumers and small businesses that were left behind by other lenders. Credit unions are pleased to play a key role in delivering growth and financial opportunity for all Americans."
The Trump administration in April released a one-page overview of its tax reform principles, which 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 is encouraging credit unions to reach out and ensure lawmakers understand the importance and value of credit unions' federal tax exemption to the nation's economy. To reach out to lawmakers by email, visit NAFCU's Grassroots Action Center.
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