WASHINGTON–A broad tax reform plan released by members of Congress indicates no change to the tax status of credit unions. CUNA President/CEO Jim Nussle issued a statement saying the trade group will continue to engage with policymakers as the tax reform discussion continues.
“The presence of not-for-profit, member-owned financial cooperatives brings numerous benefits to both members and consumers as a whole, and CUNA, leagues and credit unions are prepared to vigorously defend it, should the need arise,” Nussle said in the statement. “As the administration and Congress continue their work on tax reform, CUNA will continue its engagement to protect the credit union tax status and ensure policymakers are aware of the credit union difference as committees and staff work to add more detail to the framework.
Specifically, CUNA said it believes the credit union tax status should be preserved because:
- The tax treatment for credit unions continues to serve the purpose for which it was conveyed;
- The tax status represents good public policy, because it causes the creation of substantial benefits to the public, far in excess of its cost; and,
- Taxing credit unions would represent a tax increase on 110 million Americans—taxpayers who paid a total of $1.2 trillion in taxes in 2014—and would likely lead to the elimination of many, if not most, credit unions.