Tax Worlds Collide on Capitol Hill
Becker said he doesn’t think the credit union industry would survive if it were taxed. Credit unions would have to raise loan rates, charge higher fees and compromise service to make room on the balance sheet for taxes.
“As a result, I think they will all convert to banks,” he said, “which is what the bankers essentially want.”
The list included nearly 200 items, including some politically unpopular exemptions that seemingly have no chance to be eliminated, such as the exemption on employer health care premium contributions and the mortgage interest deduction, the top two expenditures in terms of potential fiscal impact.
In the summary section, the president’s budget proposes to raise “$580 billion in additional revenue relative to the end-of-year tax deal, from tax reform that closes tax loopholes and reduces tax benefits for those who need them least.”