January 03, 2013

Military groups back continued CU exemption

The Military Coalition, a 5.5-million-member consortium of uniformed services and veterans associations, delivered a message of "unequivocal support" forcredit unions and their federal tax exemption – NAFCU's top priority – in letters delivered Thursday to leaders of the House, Senate and congressional tax-writing committees.

"We certainly understand the fiscal challenges the nation is facing, and TMC applauds the efforts to address our country's fiscal situation," the group wrote. "However, 95 million American credit union member-owners, including millions of service members and their families, would realize a greater financial burden due to the loss of competitive lending products if the credit union federal tax exemption were to be eliminated."

Preserving credit unions' federal income tax exemption "has been and remains our number one issue," said NAFCU Executive Vice President of Government Affairs Dan Berger. "We thank TMC for its support and will continue to work with as many groups as possible to ensure credit unions' federally tax-exempt status is protected."

The coalition, which represents more than 5.5 million current and former servicemembers, their families and survivors, underscored the value credit unions, including some 200 defense credit unions, deliver to their members through safe and dependable financial services, financial education and counseling.It added,"The Military Coalition does not believe any change to the credit union tax exemption is appropriate, and believe any such change would be to the detriment of our armed forces members and families and, in the long term, to military readiness."

The coalition letters, signed by 29 member groups, went to House Speaker John Boehner, R-Ohio, and Minority Leader Nancy Pelosi, D-Calif.; Senate Majority Leader Harry Reid, D-Nev., and Minority Leader Mitch McConnell, R-Ky.; House Ways and Means Chairman Dave Camp, R-Mich., and Ranking Member Sander Levin, D-Mich.; and Senate Finance Chairman Max Baucus, D-Mont., and Ranking Member Orrin Hatch, R-Utah.

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