news.cuna.org/articles/112971-cuna-continues-tax-status-defense-after-reform-info-released

CUNA continues tax status defense after reform info released

September 27, 2017

CUNA remains prepared to defend the credit union tax status if necessary, CUNA President/CEO Jim Nussle said Wednesday in response to the release of a Republican tax reform platform. The 9-page document calls for tax cuts, but doesn’t provide specific details about how they would be funded.

“The presence of not-for-profit, member-owned financial cooperatives brings numerous benefits to both members and consumers as a whole, and CUNA, leagues and credit unions are prepared to vigorously defend it, should the need arise,” said CUNA President/CEO Jim Nussle. “As the administration and Congress continue their work on tax reform, CUNA will continue its engagement to protect the credit union tax status and ensure policymakers are aware of the credit union difference as committees and staff work to add more detail to the framework.”

Protection the credit union tax status is a top CUNA advocacy priority, and CUNA will continue its engagement with Congress and members of the administration as the plan is put together.

CUNA wrote to the Senate Finance Committee in July, outlining why the credit union tax status is sound public policy and urging Congress to retain and reaffirm credit unions’ tax status.

Specifically, CUNA believes the credit union tax status should be preserved because:

  • The tax treatment for credit unions continues to serve the purpose for which it was conveyed;
     
  • The tax status represents good public policy, because it causes the creation of substantial benefits to the public, far in excess of its cost; and
     
  • Taxing credit unions would represent a tax increase on 110 million Americans--taxpayers who paid a total of $1.2 trillion in taxes in 2014--and would likely lead to the elimination of many, if not most, credit unions.