Rep. Jim Renacci (R-Ohio) released a white paper on simplifying tax reform Thursday, a paper that would maintain the credit union tax status. The plan would replace the corporate tax with a 7% value added tax (VAT) on goods and services.
The financial services portion of the paper is incomplete and Renacci is soliciting comments about how to treat financial institutions under this proposal.
According to conversations between CUNA and Renacci’s staff, if there are any unintended consequences for credit unions due to the way this type of VAT system works, policymakers would work on a refund mechanism to make credit unions whole.
The report does not contain any proposed legislative text.