Removing Barriers Blog

Letter to Ways and Means Committee Makes Case for Credit Union Tax Status
Posted April 13, 2016 by Chandler Schuette

Today, the House Ways and Means Committee Tax Policy Subcommittee conducted its second hearing on fundamental tax reform proposals, and we submitted a letter for the record for this hearing. Rep. Devin Nunes (R-CA), a member of the committee, introduced a tax reform bill earlier this year that explicitly protects the credit union tax status.

Our letter to Subcommittee chair Charles Boustany (R-LA) and Ranking Member Richard Neal (D-MA) reiterated the credit union difference, and provided background information on the history of the tax status and recent growth trends in the industry. CUNA urged both members to  retain and reaffirm the credit union tax status in their upcoming tax reform efforts. The letter specifically mentioned the estimated $11 billion in financial benefits that credit unions provided to members and others in 2015, as well as the role the credit unions took in supporting the mortgage market and small business lending when banks retreated. 

We expressed the many negative consequences of taxing credit unions, while highlighting that a new federal credit union tax would have only paid for  0.05% of 2015 government spending while adversely impacting the overall economy.