Tax reform debate began in earnest for credit unions April 11, when representatives from CUNA and NAFCU were called to Capitol Hill to plead their case for preserving the industry’s tax exemption before aHouse Waysand Means Committee working group.   The working group included Ways and Means members Adrian Smith (R-Neb.), John Larson (D-Conn.), Aaron Schock (R-Ill.), and Richard Neal (D-Mass.), and about a dozen congressional staff members. The group will forward its finding to the Joint Committee on Taxation, which will compile all comments and submit a report to the full Ways and Means Committee by May 6.   NAFCU President/CEO Fred Becker said his contingency presented its commissioned tax study to the working group, highlighting the report’s discovery that tax exempted credit unions provide $10 billion in annual savings to Americans. 

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.”

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