Credit Unions Caught in Political Dodge Ball: Editor/Publisher's Column
Last week, credit unions’ federal tax exemption appeared to be in jeopardy. H.R. 6474 would have gradually repealed credit unions’ tax-exempt status over five years. Fortunately for credit unions, a spokesman for Rep. Dennis Ross, the bill’s sponsor, explained that the inclusion of this in the bill was accidental, and it will be deleted by a manager’s amendment.
While credit unions seem to have dodged this lob for now, it did draw attention to the credit union tax exemption, which the banking lobby is sure to relish. The issue has been brought up time and again, and particularly since the economic crisis and the resulting Simpson-Bowles commission, but this was the first time credit unions were named specifically in federal revenue legislation in decades, intentional or not.