While credit unions are often asking Congress to do something, when it comes to taxation no news is good news.
The apparent inability of the House-Senate deficit reduction panel to agree on a plan means that at least for the time being the credit union tax exemption is safe.
Media reports indicate that the committee, which Congress created last summer during the negotiations leading to the raising of the debt ceiling, will conclude its business this week without issuing recommendations.
As a result, tax expenditures, the name given to the credit union tax exemption and similar policies, won’t be touched, even though some budget specialists said that eliminating those expenditures could be part of a bigger plan to reduce the deficit.
Lawmakers could revisit the tax issue at a later time and there have been calls by both Democrats and Republicans to attempt comprehensive tax reform.
The House-Senate committee apparently failed to come to an agreement because Republicans wouldn’t give sufficient ground in allowing tax increases while Democrats wouldn’t agree to enough cuts in some of the spending on domestic spending programs.