By Ray Birch
WASHINGTON—CUToday.info has obtained a copy of a document being circulated among House Republican members that identifies numerous ways the Trump Administration can find money to support the budget reconciliation bill—and the credit union tax exemption is on the paper.
As CUToday.info has reported, Washington insiders believe this year’s tax fight—as the government rewrites the tax code—will be one of the toughest the movement has faced.
On page 11 of the 51-page document, which identifies numerous ways the government can support the budget bill, is the CU tax exemption (see screen shot below). The movement’s tax break is listed under the category of “Taxes.” There are other categories, such as “Health,” “Energy” and “Welfare.” The document’s list of ways to fund the budget is extensive. The document notes eliminating credit unions' tax break generates $30 billion in savings over ten years.
“It’s clear, the credit union tax exemption is on Washington’s tax relief offset menu this year,” said Defense Credit Union Council President and CEO Anthony Hernandez. “DCUC has been out front and raising the alarm on this issue since last summer. We have been very aggressive in meeting with dozens of members of Congress, especially in the 119th Congress.”
Anthony Hernandez
Hernandez told CUToday.info the movement is “well past zero hour. Yet, we will remain relentless in fighting for all credit unions on Capitol Hill.”
Hernandez acknowledged the document clearly shows Congress will be looking in every corner for money in 2025.
“This is the most comprehensive list of bill payers that we have seen put together for the entire caucus to consider and register each of their votes,” he said. “The fact that credit unions remain on the list is a call to action for all credit unions and industry partners to get engaged.”
Hernandez emphasized CUs need to move swiftly.
“With completion of the final reconciliation package in the next few weeks, we have limited time to continue making our case,” he said.
After learning CUToday.info obtained a copy of the document, DCUC quickly sent a letter to House leaders outlining why the CU tax status should not be changed.
As CUToday.info reported, the House Ways and Means Committee held its first hearing on tax reform in the 119th Congress this week, and the credit union tax status was not addressed.