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While the National Commission on Fiscal Responsibility and Reform's just-released draft report on deficit reduction options does not mention credit unions by name, tax expenditures are on the panel's target list. The commission is President Obama's bipartisan advisory group charged with coming up with ways to cut the country's debt.

Under the very broad brush strokes of the commission's proposals, the panel could eliminate the credit union tax exemption without taking into consideration whether such a change in policy could have dire consequences.

As CUNA President/CEO Bill Cheney noted Wednesday, underscoring CUNA's adamant and unwavering support of credit unions' tax status, "If taxed, could credit unions as cooperative, not-for-profit financial institutions continue to effectively serve their members? Our answer: Absolutely not!"

However, Cheney noted, the commission draft has an uphill battle to see daylight. It requires a super majority of 14 if the commission's 18 members to be officially "recommended," and some observers say that will be tough to get.

Click here to read the full story from CUNA.