WASHINGTON–The cost of the credit union tax exemption to the Federal Treasury will be $14.4 billion between 2016 and 2020, according to an estimate included in a new report from the congressional Joint Committee on Taxation.
The report, which can be found here, is getting scrutiny as both President Trump and members of Congress have indicated tax reform is a priority. Earlier this week, Sen. Orrin Hatch (R-UT), who chairs the Senate Finance Committee, told the U.S. Chamber of Commerce that he and other congressional Republicans are planning to take on comprehensive tax reform in this Congress.
The credit union tax exemption has been in place since passage of the Federal Credit Union Act in 1934.
As CUToday.info reported here, NAFCU recently released an independent study that shows the benefit to U.S. consumers from the credit union federal income tax exemption is $16 billion per year, or $159 billion over the 10-year period the study examined.