ARLINGTON, Va.—In advance of a hearing Tuesday on business tax reform, NAFCU urged the leaders of the Senate Finance Committee to protect credit unions’ federal tax exemption.
“The cumulative benefit credit unions provide the greater economy totals over $17 billion per year according to an independent study released by NAFCU in 2014,” wrote NAFCU Vice President of Legislative Affairs Brad Thaler. “This number far outpaces the cost of the credit union tax exemption and any potential revenue that would be raised by eliminating it … Eliminating the credit union tax exemption would result in the loss of 150,000 jobs per year, a shrinking of the GDP, and a net loss of revenue to the federal government.”
Currently, no lawmakers are proposing tax reform plans that include any alteration of the credit union tax exemption, stated NAFCU, which added that the trade association’s top legislative priority continues to be protecting the tax exemption. NAFCU said it will continue to monitor tax reform discussions on Capitol Hill for any potential impact on the credit union industry.