CU Tax Exemption Revocation in Tax Bill Called a Drafting Error (Misc News: November 16, 2012)
The inclusion of elimination of the credit union tax exemption in a bill in the U.S. House was made in error, staff for the sponsoring congressman said.
News broke on Nov. 14 that legislation to implement the Simpson-Bowles deficit reduction plan, which would make several changes to the tax code included the credit union tax exemption. But staffers for U.S. Rep. Dennis Ross, R-Fla., said the credit union exemption should have been placed in the retain column and called it a drafting error. Rep. Ross is a known credit union ally, and both CUNA and the League of Southeastern Credit Unions immediately contacted his office on the measure.
Because of House rules, the bill cannot be changed at this point. With or without the exemption, the bill is unlikely to move in the last days of this Congress, but Rep. Ross' staff has confirmed that if it does, they will promptly seek the necessary corrections to the measure.
"While this situation is not cause for immediate worry, it is a strong reminder to credit unions that we must remain vigilant and politically active, as threats to the credit union tax exemption can materialize quickly – especially with comprehensive tax reform on Congress' horizon next year," MCUL & Affiliates CEO David Adams said.
For more information, contact Kieran Marion, MCUL vice president of governmental affairs at Kieran.Marion@mcul.org.