Wednesday, November 14, 2012 - 1:50 PM

Credit Union Tax Exemption On Chopping Block In New House Bill

From the Credit Union Times

Eliminating the federal tax exemption for credit unions is included in H.R. 4674, the House bill that contains the seven immediate reforms recommended by the National Commission on Fiscal Responsibility and Reform.

KenBDG5,146 posts since
Nov 29, 2009
Rep Points: 117,062

1. Wednesday, November 14, 2012 - 4:06 PM

Credit Unions need to do some extra digging to see who is trying to sneak that through. Banks have longed for this to happen. If it came with giving credit unions more freedom to raise capital and widen memberships it might not be an entirely bad thing. Although, it could lead to there not being much differentiation between the two.

ChrisCD30 posts since
Nov 18, 2010
Rep Points: 184

2. Wednesday, November 14, 2012 - 6:45 PM

I just noticed that there is a note inserted in the the article indicating the elimination of the tax exemption was mistakenly added to the bill. Sounds like this is not going to be an immediate threat to the credit union industry.

lou351 posts since
Aug 3, 2010
Rep Points: 1,985

3. Thursday, November 15, 2012 - 3:39 PM

Yes, you're right Lou. This no longer appears as an immediate threat for credit unions.

The Credit Union Times editor-in-chief just wrote this commentary about this. Here's an excerpt:

While credit unions seem to have dodged this lob for now, it did draw attention to the credit union tax exemption, which the banking lobby is sure to relish. The issue has been brought up time and again, and particularly since the economic crisis and the resulting Simpson-Bowles commission, but this was the first time credit unions were named specifically in federal revenue legislation in decades, intentional or not.

KenBDG5,146 posts since
Nov 29, 2009
Rep Points: 117,062