August 25, 2017

NAFCU ever-vigilant on CU exemption as White House pushes tax reform

NAFCU remains vigilant in protecting the credit union tax exemption as the White House prepares a stronger push for tax reform legislation – likely this week – according to reports.

Reuters, covering a report from The Financial Times on Friday, reported that President Donald Trump would begin his efforts with a speech Wednesday in Missouri, according to National Economic Council Director Gary Cohn.

Also last week, Politico quoted White House Press Secretary Sarah Huckabee Sanders saying that a focus on tax reform is a big priority for the Trump administration and that action would "probably" start this week and carry into the fall.

NAFCU continues to meet with lawmakers and policymakers to share the findings of a tax study it released earlier this year showing the value of the credit union tax exemption to consumers and the broader economy. Preservation of credit unions' tax exemption, NAFCU's top legislative priority, will also be a key focus for credit union representatives visiting lawmakers next month during NAFCU's Congressional Caucus in Washington.

"NAFCU supports tax reform efforts that will help grow the economy, just as the credit union tax exemption is doing now," said NAFCU President and CEO Dan Berger. "U.S. consumers benefit from credit unions' tax exemption to the tune of $16 billion per year, and we will continue to share this message with the administration and Congress as the reform debate gets underway."

Credit unions are encouraged to reach out to their lawmakers on this issue via NAFCU's Grassroots Action Center.

Most recently, leaders from several NAFCU-member credit unions and association staff met with Treasury Department Secretary Steven Mnuchin to discuss tax reform, among other credit union issues.

In April, the Trump administration released a one-page overview of its tax reform principles. The reform overview emphasized the importance of simplifying the tax code, creating jobs and providing tax relief for middle-income families. In July, Mnuchin, White House advisors, House and Senate majority leaders and the chairmen of the House Ways and Means and Senate Finance Committees released a joint statement reiterating Republicans' goal to advance tax reform this fall.