ARLINGTON, Va. — Upon hearing of Treasury's consideration of repealing the credit union tax-exemption, NAFCU issued a stern letter against the idea that would change the very nature of credit unions.
The Treasury Conference on Business Taxation and Global Competitiveness advocates reducing the tax burden on corporations by, in part, taxing credit unions.
"NAFCU strongly disagrees with the Department of Treasury's analysis related to the repeal of credit union tax exemption and urges the Department of Treasury to retract the suggestion that the exemption of credit unions from income tax should be repealed," NAFCU Senior Counsel and Director of Regulatory Affairs Carrie Hunt wrote in a letter to Treasury.
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She cited to comments of President George W. Bush from 2004 supporting the credit union tax-exemption and former Treasury Assistant Secretary Emil Henry's remarks just last September reiterating that, "Credit unions occupy a somewhat unique place in the financial institution marketplace by offering access to financial services to millions of Americans based on a cooperative ownership structure…The President recognized the important role that credit unions and pledged…to maintain credit unions' tax exempt status. As I stand here today, I can wholeheartedly say that the Administration continues to support credit unions' tax exemption."
NAFCU, as had CUNA, requested a meeting to discuss the issue in detail.
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