The credit union movement is once again breathing a sigh of relief, as the CU tax exemption remained untouched in the final House and Senate version of a tax reform bill passed today, which will now head to the White House for President Trump’s signature.
“Credit unions said loudly and repeatedly throughout this process that any change to the credit union tax status amounts to a direct tax increase on 110 million Americans and Congress heard our message,” Jim Nussle, president and CEO of the Credit Union National Association, said in a press release. “With tax reform complete, we’re focused on much-needed regulatory relief for credit unions and American consumers.”
Dan Berger, president and CEO of the National Association of Federally-Insured Credit Unions, thanked President Trump, Treasury Secretary Steven Mnuchin and members of Congress for their support of the credit union tax-exempt status.
"This accomplishment to preserve the credit union tax exemption could not have been achieved without credit unions reaching out to their members of Congress and without the support of our many champions in the House and Senate," Berger said in the release. "NAFCU has prioritized preserving the credit union tax exemption for years, successfully keeping credit unions top of mind at a time on Capitol Hill when there are so many competing interests.”
While credit unions – and their tax exemption – enjoy strong support from both sides of the political aisle, the tax bill did not share that popularity. It moved through Congress on a widely partisan voting line – all 48 Democrats in the Senate voted against the bill – and many Americans view the bill skeptically. The financial services industry, however, has largely been in favor of the legislation, which would lower the corporate tax rate from 35% to 21%, among other measures.