Snow to Mica: Support of CU tax status is firm

WASHINGTON (10/28/05)--U.S. Treasury Secretary John Snow repeated the Bush Administration's support of the credit union tax status and said there is no wavering on that issue, reported President/CEO Daniel Mica of the Credit Union National Association (CUNA) Thursday.

In an early morning conversation between Snow and Mica, the head of the Treasury Department said concerns are being raised about very large credit unions operating like banks. Mica took the opportunity to reiterate that large credit unions are not-for-profit cooperatives and no different in structure than small ones, and their size and service offerings have no bearing on their tax-exempt status.

Mica characterized his discussion with Snow as "friendly and positive."

CUNA has in recent weeks been monitoring and informing the movement about reports that the House Ways and Means Committee is taking a look at a federal income tax exemption for not-for-profits—including credit unions—as one of many possible ways of defraying a part of an estimated $50 billion in costs associated with the federal government's Hurricane Rita relief efforts and a growing federal budget deficit.

"We are implementing a plan to ensure lawmakers hear a strong message from credit unions about why the tax status continues to be justified," Mica said.

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