WASHINGTON (11/22/11)--As the Congressional Joint Select Committee on Deficit Reduction on Monday announced its inability to reach a deal to address the spiraling national debt, concerns that the credit union tax status could be one of many moves made to eliminate tax expenditures receded.
Credit Union National Association (CUNA) President/CEO Bill Cheney said CUNA's concern had been the possibility that the credit union tax status might somehow get in the mix of possible deficit reduction measures, and although CUNA assessed this threat as "low, but not zero," it "took this threat very seriously because of the unprecedented nature of the process by which Congress was attempting to deal with deficit reduction."
The so-called supercommittee, which was created by the Budget Control Act in August, was tasked by Congress to produce legislation to reduce the deficit by $1.2 trillion over the next ten years. The supercommittee was co-chaired by Sen. Patty Murray (D-Wash.) and Rep. Jeb Hensarling (R-Texas) Democratic Sens. Max Baucus (Mont.) and John Kerry (Mass.), Republican Sens. John Kyl (Ariz.), Rob Portman (Ohio), and Pat Toomey (Penn.), House Democrats, Reps. Xavier Becerra (Calif.), Jim Clyburn (S.C.), and Chris Van Hollen (Md.), and House Republicans Fred Upton and Dave Camp, both of Michigan, also served on the panel.
The deficit reduction committee was required to vote on a final reduction plan by Nov. 23. A predetermined set of cuts to defense and domestic spending will come into effect in 2013 if other spending cuts are not agreed to.
Murray and Hensarling in a joint release said they were "deeply disappointed" that the committee was "unable to come to a bipartisan deficit reduction agreement," and President Barack Obama urged Congress to work on new measures to reduce the deficit.
CUNA closely followed developments surrounding the supercommittee, and repeatedly emphasized the positive impact that the credit unions have on the members and communities that they serve. Cheney added that CUNA will continue to monitor for any threats to the tax status that could develop should Congress engage in comprehensive tax reform efforts in 2012 or 2013.