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CU Tax Status Left Untouched in Senate Reform Report
Thursday, July 9, 2015 6:45 AM

The U.S. Senate Finance Committee working group charged with examining the business income tax code released its report Wednesday with recommendations for reforms. It contained no mention of altering the credit union tax status in any way.

Credit Union National Association and state credit union leagues have been consistently vocal and successful in countering a number of inaccurate bank attack ads that have increased in frequency. As recently as June 9, CUNA President and CEO Jim Nussle, COO Rich Meade, and other top CUNA officials met with Sen. John Thune (R-SD), chair of the working group, for further discussions on the value of the credit union tax status.

Among other actions, Nussle wrote to the working group in April, emphasizing that the credit union tax status is “good public policy.” Nussle’s letter highlighted the numerous benefits that credit union members and other American consumers receive from the not-for-profit cooperative financial system.

The Business Income Tax Reform Working Group was co-chaired by Sens. Thune and Ben Cardin (D-MD). The report does mention several structural reforms—outside of the credit union system—to create a business tax code that would “promote tax neutrality and economic growth.”

These reforms include uniformly taxing business income and removing disincentives to save and invest. There is also mention of a potential provision that would require mandatory e-filing of all Form 990s.