Florida congressman makes good on promise not to include tax exemption in debt reduction bill.
According to industry veteran John McKechnie, who was working on Capitol Hill back in 1986, the last time credit union tax exemption was on the Congressional chopping block, a “volatile” environment on Capitol Hill means credit unions should be vigilant when it comes to protecting their tax-exempt status in 2013.
Tax expenditures are receiving a lot of scrutiny as Congress looks for ways to increase revenues and cut the deficit.
Eliminating the tax exemption for credit unions was mistakenly included in the House bill that contains the seven immediate reforms recommended by the National Commission on Fiscal Responsibility and Reform, its sponsoring congressman said last Wednesday afternoon.
Spokesman for U.S. Rep. Dennis Ross says exemption should be in "maintain" and not "phase-out" part of the bill.
Five-year phaseout of exemption in Simpson-Bowles commission bill; first time since Reagan era that eliminating exemption proposed.
In a letter to the co-chairs of the National Commission on Fiscal Responsibility and Reform, CUNA President/CEO Bill Cheney wrote that if credit unions lose their tax-exempt status, consumers will pay the price.