WASHINGTON—It’s official: senior House Ways and Committee member Devin Nunes (R-CA) Wednesday introduced his tax reform bill that leaves the credit union tax exemption intact.
CUToday.info reported last week that the new legislation was expected to be introduced that would propose a financial institutions transaction tax, and that credit unions would will not be subject to the assessments. New Tax Legislation Does Not Include CUs
The bill, H.R. 4377, the “American Business Competitiveness Act,” would adopt reforms to “encourage businesses to invest and expand, make it much easier for Americans to open their own business, and kickstart growth throughout the entire U.S. economy,” Nunes said.
Nunes’ legislation not only leaves credit unions’ tax exemption alone, but it specifically exempts credit unions to avoid any confusion, NAFCU explained. NAFCU stated that it is reviewing the tax reform bill for any other matters related to the credit union industry.
“NAFCU thanks Rep. Nunes for his support of credit unions in his tax reform legislation,” said NAFCU Vice President of Legislative Affairs Brad Thaler.
“We’re staying in close contact with members in both the House and Senate – especially those on the House Ways and Means Committee and the Senate Finance Committee – to ensure preservation of credit unions’ tax exemption,” Thaler continued. “If a threat arises, NAFCU members can rest assured that we will quickly respond.”
Ryan Donovan, CUNA’s chief advocacy officer, praised the Nunes and his bill for the understanding shown of “the public policy value of the credit union tax status.”
Nunes’ bill eliminates the income tax on businesses and replaces it with a cash-flow tax. It also includes four main provisions:
- 100% same-year expensing for business investments
- A maximum business tax rate of 25%
- The closing of loopholes and special deals on businesses taxes
- The moving to a territorial international system
NAFCU in 2014 released an updated study on the value of the credit union tax exemption to the U.S. economy.