WASHINGTON-Even as state attempts to tax credit unions appear to be spreading, credit union lobbyists are not worried about any changes at the federal level. “We oppose taxation of credit unions at any level,” NAFCU Director of Legislative and Political Affairs Brad Thaler said. “We’ll say that right off the bat.” He emphasized that NAFCU in no way views the current efforts to tax credit unions at the state level as an opportunity to boost dwindling federal credit union charters. “I think that the American Bankers Association and other groups and individuals who have a record of not being supportive of credit unions have an array of options available to them to try and rein in credit union activities to make credit union charters less appealing. So, we’re not surprised to see them taking different arrows out of their quiver as they move forward,” NAFCU Senior Vice President and General Counsel Bill Donovan said. “The bank lobby for years has been trying to persuade folks in Congress to repeal the provisions in the Internal Revenue Code extending the credit union exemption from income tax to federal chartered credit unions without success and we don’t see them gaining any traction at this point.” “They’re always going to be talking about it,” CUNA Vice President of Legislative Affairs and Senior Legislative Counsel Gary J. Kohn concurred. “Do I think there will be a bill or an amendment to do that? I think it’s highly unlikely. If there is, it would get little if any support.” NAFCU Communications Manager John Zimmerman pointed out that most tax proposals are raised by the Treasury Department and that when President George W. Bush was still a candidate, he said he would not pursue the taxation of credit unions. [email protected]

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