January 15, 2013

CU exemption untouched by new Ross bill

As NAFCU advocated, the credit union tax exemption is not affected by a revised deficit reduction bill introduced Monday night by Rep. Dennis Ross, R-Fla.

H.R. 243, the Bowles-Simpson Plan of Lowering America's Debt Act (BOLD Act), would adopt seven immediate reforms recommended by the National Commission on Fiscal Responsibility and Reform to reduce spending. It is a revised version of H.R. 6474, a deficit reduction package introduced by Ross last year that initially targeted the credit union tax exemption, in error, for elimination.

Last year's bill originally called for a phase-out of the credit union tax exemption from 2013 through 2017. NAFCU responded immediately by meeting with Ross' staff when the provision came to light. After the meeting, Ross' office confirmed that the credit union tax exemption was included in error.

Brad Thaler, NAFCU's vice president of legislative affairs, thanked Ross and his staff for their work to ensure the credit union tax exemption is protected. "Rep. Ross is a long-time supporter of credit unions," he said. "We appreciate his and his staff's openness in discussing our concerns and following through on their commitment to not include the credit union tax exemption in this bill."

A landmark study released by NAFCU in September shows eliminating credit unions' exemption from federal corporate income tax would cost consumers billions of dollars and reduce federal revenues.

Ross has been a friend to credit unions on key issues. For example, he is a cosponsor in the last Congress of the member business lending cap increase bill as well as legislation to ensure fairness in federal examinations of financial institutions.

Ross is a member ofthe House Financial Services Committee this Congress.