WASHINGTON (5/6/13)--The Joint Committee on Taxation (JCT) is expected to deliver its working groups' report on tax policy reform today to the House Ways and Means Committee, which writes tax policy.
The report will broach a broad spectrum of tax issues, including those impacting credit unions. However, the Credit Union National Association does not expect the report to contain any policy recommendations.
"The fact of the matter is that this is a kitchen sink report. It's not the job of the staff of JCT to make decisions about what is included or not included in legislation to address tax policy," explains Ryan Donovan, CUNA's senior vice president of legislation affairs.
"This is a critical time for credit unions to be educating their members on the value of the credit union tax status and encouraging them to contact lawmakers to express their support," Donovan added. CUNA research has revealed that the more credit union members understand the value of the tax exemption, the more likely they are to take action to protect it.
"For instance, when members understand that for every $1 of the credit union federal income tax exemption, $10 goes back to consumers in better rates and lower fees, they are motivated to advocate for the exemption," Donovan said.
He also noted that the next several weeks will be key in terms of what actually goes into a tax reform bill in the House. "It's possible that the House could consider comprehensive tax reform legislation before the end of July."
"Ever since the Speaker of the House announced at CUNA's Governmental Affairs Conference in February that the first action of the House this year would be the tax reform bill, the expectation has been that they would try to complete House consideration before August recess," said Donovan.
CUNA provides a Tax Advocacy Toolkit to its member credit unions to help with their efforts to educate their own members on credit union tax issues. CUNA members can use the resource link to access the toolkit.