ARLINGTON, Va.–What can credit unions expect from new leadership in the Senate Banking Committee as well as from Congress overall regarding the CU tax exemption?
NAFCU said it remains too early for any real forecast, but the trade group does not believe any threat to the tax exemption is in the near future.
Leading the Senate Banking Committee is Sen. Sherrod Brown (D-OH), who has long been vocal on consumer issues and who has spoken out in the past on credit unions.
NAFCU EVP and General Counsel Carrie Hunt noted Brown has been an active participant in reform of the government-sponsored enterprises (GSEs), Fannie Mae and Freddie Mac, which remain under federal conservatorship, and she expects he will continue to be. Another issue Hunt expects Brown to bring to the forefront of his agenda is affordable housing.
“He has been very supportive of credit unions and NAFCU has worked with his office,” said Hunt.
As CUToday.info reported here, Brown has proposed a sweeping agenda for the committee, saying he will seek to improve housing and banking services for low-income Americans, fight global warming and foster racial equality.
Brown has also in the past weighed in on numerous credit union-related issues, including expressing criticism of NCUA for delays in risk-based capital rules; grilling NCUA Chairman Rodney Hood for his appearance in a video supporting President Trump; and raising concerns over the nomination of Kyle Hauptman to the NCUA board.
CU Tax Exemption
Meanwhile, Hunt noted the ongoing pandemic and the strain it is putting on the federal deficit will likely be getting ongoing attention, and that typically brings with it some mention of ending the CU tax exemption as a means of raising federal revenue.
“We will have to see how the pandemic plays out,” said Hunt, noting that over the next year or more there will be plenty of opportunities to open the tax code.
And while she doesn’t expect the tax exemption will be targeted, that doesn’t mean some sort of threat might not emerge.
“We will have to be hyper-vigilant,” said Hunt. “We do not see the tax threat from the Democrats, but we do need to watch for unintended consequences” of other legislation and activities.
Other Comments
Other comments offered by Hunt:
- On the recent Memorandum of Understanding signed by NCUA and the CFPB: “We have looked at it. I think it’s the typical kind of agreement between regulators. It’s not so much about the Memorandum of Understanding as it is how will it be executed.”
- On hosting live meetings and events: NAFCU recently announced its July Annual Meeting has been cancelled and will be digital. In 2021, “We have planned for our events to be both digital and live. It will depend on the situation at the time. My hope, of course, is for my personal favorite, the Congressional Caucus, to be an in-person event if possible.”
- On the fate of data privacy and security legislation in the new Congress. “It is a bipartisan issue; it’s not a Democratic or Republican issue. It really is about how do you address data privacy and security in different jurisdictions. I doubt it will see much attention right out of the gate. It also depends on whether action comes on the consumer or the banking side of the issue.”