WASHINGTON—New legislation is expected to be introduced soon that will propose a financial institutions transaction tax. Credit unions, however, will not be subject to the assessments, according to a new report.
Rep. Devin Nunes (R-CA), a senior member of the House Ways & Means Committee, will introduce legislation updating the nation's tax policy, reported the League of Southeastern Credit Unions & Affiliates, which has received an advance copy of the bill that remains in draft form. As a matter of offsets, Nunes has included a financial institutions transaction tax.
“The legislation explicitly removes credit unions from any form of taxation,” LSCU stated. “This is a big victory for credit unions, as it not only upholds the credit union tax exemption, but it specifically states an exemption for credit unions. While the league does not expect any type of comprehensive tax reform in 2016, it does remain vigilant of any potential threats.”
Several of the Democratic candidates for president have also proposed or made reference to various levies on financial institutions. Hillary Clinton has proposed a fee on FIs of more than $50 billion in assets, while rival Sen. Bernie Sanders has proposed breaking up all of the big Wall Street banks.