WASHINGTON–The American Bankers Association has joined another bank trade group in calling for the credit union tax exemption to be eliminated as part of the tax reform bill working its way through Congress.
As CUToday.info reported here, the Independent Community Bankers of America praised Congress for its work on HR 1, the tax reform legislation, but said it wants to see an amendment added that addresses the tax status of credit unions.
The American Bankers Association has followed with a similar statement. Rob Nichols, the ABA’s president and CEO, said in a letter to the House Ways & Means Committee that while it supports a lower tax rate for all U.S. businesses, it has a number of concerns with specific provisions, including the limits on net interest deductibility, the treatment of pass-throughs and changes to homeownership incentives. He said the ABA is further concerned that the House bill proposes to change the rules for deducting the cost of FDIC premiums for some banks.
Nichols then moved on to address a long-time ABA criticism.
“We are disappointed the House has not taken this critical opportunity to address the tens of billions of dollars in outdated, unfair and unreasonable tax advantages enjoyed by credit unions and the Farm Credit System,” he wrote. “We will continue to make the case that businesses offering similar services should be treated equally under the tax code.”