January 25, 2013

Camp drafts tax bill on financial products

Jan. 25, 2013 – House Ways and Means Chairman Dave Camp, R-Mich., released a draft bill Thursday on reform of the tax treatment of complex financial instruments, part of a larger effort to secure comprehensive corporate tax reform.

The panel is soliciting comments on Thursday's draft as it continues to seek ways to broaden the tax base and lower rates.

NAFCU is closely monitoring all discussions regarding tax reform for its potential impact on credit unions and their members. Preserving the credit union exemption from federal corporate income tax is the association's top priority. (See NAFCU's tax exemption study on why the exemption benefits all Americans; share it with lawmakers.)

Lawmakers have been linking tax reform with deficit reduction issues for more than a year. In the face of sequestration under last year's debt deal, taxes could get action sooner rather than later, even if lawmakers and the White House are looking at "suspending" the federal debt limit until May.

The fiscal cliff deal enacted earlier this month delays sequestration, or across-the-board spending cuts, until late February.