Trump Admin estimates 33 percent drop in cost of CU tax exemption

The Trump Administration on Monday estimated that the cost of the credit union tax exemption will be $24.017 billion during the next 10 years—a 33 percent drop from last year. However, the budget details the administration released Monday do not provide a reason for the re-estimate.

The budget also proposes slashing funding and restructuring the funding mechanism for the Consumer Financial Protection Bureau and placing it under the annual appropriations process starting in FY21.

The administration released the spending portion of the FY20 budget plan last week, leading to some confusion over the legislative and technical assumptions the administration was using.

Just a year ago, the administration’s budget pegged the cost of the tax exemption at $35.79 billion between 2018 and 2027. The year before, the figure was $35.31, a whopping 32.3 percent increase over the estimate made in the last year of the Obama Administration.

Read more at CreditUnionTimes.