Removing Barriers Blog

CUNA Sends Input on Senate Tax Reform
Posted November 17,2017 by CUNA Advocacy

Yesterday, CUNA sent a letter to Chairman Orrin Hatch and Ranking Member Ron Wyden of the Senate Finance Committee in response to the Chairman’s mark of the Tax Cuts and Jobs Act.  In the letter, CUNA highlights the importance of credit unions and that they are American’s best option for financial services. 

Last week the Committee released its version of comprehensive tax reform, and while the credit union tax status is currently untouched, the Chairman’s mark includes several provisions that could impact tax-exempt organizations like credit unions, including expansion of the Unrelated Business Income Tax (UBIT) and new excise taxes on executive compensation.  

Without legislative text, CUNA cannot be completely certain of the applicability and impact of certain provisions to credit unions.  In the letter CUNA goes into detail as to why the Unrelated Business Income Tax and Excise taxes on executive compensation could adversely affect credit unions and their members. 

Last night, the Senate Finance Committee passed the Mark through the Committee.  It is expected to be brought to the full Senate when they return from their Thanksgiving break. 

As the Senate continues its work on tax reform, CUNA will continue to ensure the credit union voice is heard and understood.