WASHINGTON — In a letter to NAFCU Senior Counsel and Director of Regulatory Affairs Carrie Hunt, Treasury Deputy Assistant Secretary for Tax Analysis Robert J. Carroll explained that the Treasury Department is not suggesting taxing credit unions.
NAFCU had written the Treasury Department following the release of its background paper for the July 26, 2007 Business Taxation and Global Competitiveness Conference, concerned it was suggesting repealing the credit union tax-exemption. Carroll wrote in response, "The Administration recognizes the important role credit unions play in our financial system. Let me assure you that the Treasury Department is not proposing that the tax exemption for credit unions be repealed."
He further explained that the backgrounder was simply an illustration of how much the corporate tax rate could be reduced and "the potentially difficult policy trade-offs involved."
Following Treasury's response, NAFCU President/CEO Fred Becker commented, "I want to thank the Treasury Department and the White House for quickly clarifying the Administration's position on the tax exemption and reaffirming the president's long-standing support for credit unions."
© Arc, All Rights Reserved. Request academic re-use from www.copyright.com. All other uses, submit a request to TMSalesOperations@arc-network.com. For more information visit Asset & Logo Licensing.