WASHINGTON (1/8/16)--Rep. Devin Nunes (R-Calif.) began circulating a new draft of comprehensive tax reform legislation this week as the U.S. House kicked off its first days back to work in 2016. The bill states specifically that it imposes no new taxes on credit unions.
"This legislation reaffirms the tax status of credit unions and states specifically that its provisions are not meant to include credit unions," Credit Union National Association Chief Advocacy Officer Ryan Donovan said Thursday.
"We appreciate having the opportunity to read the legislation in its draft form and also strongly appreciate that the draft bill reflects the congressman's understanding of the public policy value of the credit union tax status," Donovan said.
Preserving the credit union tax status is a top advocacy priority of CUNA, the state credit union leagues, and credit unions.
CUNA estimates consumers saw benefits of an estimated $12 billion in savings in 2014 alone, due to credit unions' lower fees, lower rates and higher yields on deposits. Approximately $2 billion of these savings affect bank customers due to credit unions’ competitive effect on the financial services market.
Nunes, a long-serving member of the tax-policy writing House Ways and Means Committee, plans to introduce the legislation, titled the American Business Competitiveness Act, in the coming weeks. He is a longtime supporter of credit unions.
" The ABC Act won't reform the existing business tax system--it will revolutionize it by implementing a far simpler and fairer system that will kickstart economic growth," Nunes told CUNA's News Now.
His draft legislation has been widely praised and mentioned as a possible vehicle to kick start the corporate tax reform legislative effort this year. "CUNA appreciates the stakeholder engagement the congressman and his staff have invited in the formulation of this legislation," Donovan added.