CUNA is prepared to closely analyze the release of tax reform legislation by the House Ways and Means Committee. CUNA President/CEO Jim Nussle, who has served as chair of the House Budget Committee and director of the Office of Management and Budget, said CUNA staff will examine the legislation once released by the committee.
“The CUNA team, including myself, will be reviewing the bill for any mention of credit unions, as well as for any provisions that have the potential to impact credit union operations, and ensure credit unions stay up-to-date on the latest developments,” Nussle said. “This bill is the first step in a long-awaited tax reform process and my experience shows engagement and advocacy are essential throughout the process, which CUNA, our league partners and credit unions are fully prepared for.”
Maintaining the credit union tax status is CUNA’s number one tax priority and CUNA has engaged policymakers on its importance. In a July letter to the Senate Finance Committee, CUNA outlined the numerous ways the credit union tax status is sound public policy, including:
· The tax treatment for credit unions continues to serve the purpose for which it was conveyed;
· The tax status represents good public policy, because it causes the creation of substantial benefits to the public, far in excess of its cost; and
· Taxing credit unions would represent a tax increase on 110 million Americans--taxpayers who paid a total of $1.2 trillion in taxes in 2014--and would likely lead to the elimination of many, if not most, credit unions.