WASHINGTON–The Senate Committee on Finance has scheduled a hearing this week titled “The 2025 Tax Policy Debate and Tax Avoidance Strategies” that will include among its witnesses an organization that has been strongly critical of the credit union tax exemption.
The hearing, which is supposed to focus on the Tax Cuts and Jobs Act (TCJA), which sunsets at the end of 2025, is to be held Sept. 12 at 10 a.m.
Among those scheduled to testify is Daniel Bunn, president and CEO of the Tax Foundation, which has been outspoken in its opposition to credit unions’ federal tax exemption. Last week, the Tax Foundation’s Scott Hodge appeared as part of a segment on CNBC during which he said, “I think it's time to reevaluate the tax exemption that the credit unions now have because they're no longer these…membership-serving organizations. They're growing and expanding and they're essentially commercial banks masquerading as nonprofits.”
In response, America’s Credit Unions sent a letter calling the statements “misinformation.”
‘Laying the Groundwork’
“America’s Credit Unions, in partnership with leagues and credit unions, is laying the groundwork now to protect the credit union tax status. This is a priority issue at Congressional Caucus next week, and the organization earlier this week responded to misguided attacks from the Tax Foundation…,” ACU said.
America’s Credit Unions said it will provide credit unions with resources to educate lawmakers and the public on the credit union difference and benefits of the tax status.
Increasing Scrutiny
Several Hill advocates in discussions with CUToday.info have expressed concerns over how the once-sacred CU tax exemption on Capitol Hill has been coming under increasing scrutiny as CUs purchase banks and enter into big-time naming rights agreements with professional and college sports teams, including the recent announcement by Northwest FCU that it had bought the naming rights to the NFL’s Washington Commanders’ home stadium.
The Witnesses
Also scheduled to testify at the hearing are:
- Doris Duke, distinguished visiting fellow at the McCourt School of Public Policy at Georgetown University and Roosevelt Institute Tax Fellow.
- Jeff, Brabant, VP-federal government relations, National Association of Independent Business.
- Bob Lord, senior advisor on tax policy, Patriotic Millionaires