WASHINGTON (11/14/13)--Taxing large credit unions as thrift institutions is one option noted in the Congressional Budget Office's (CBO) list of budget and revenue options presented to the House-Senate Budget Conference Committee on Wednesday. The CBO made it clear that its list of options were discussion items and not recommendations.
"It's no surprise that credit unions are listed," Credit Union National Association Senior Vice President of Legislative Affairs Ryan Donovan said. Taxing credit unions was mentioned as an option in 2005, 2007 and 2009 versions of the biennial report, but was not listed in or 2011.
Donovan said the addition of credit unions into this year's report shows they should remain focused on the budget process and how it could impact tax reform.
Other options listed in the CBO report include:
Treating large pass-through entities as C corporations. This change would impact many Subchapter S banks;
Eliminating the subchapter S option and taxing limited liability companies as C corporations. This change would impact one-third of the banks in the U.S. that are organized as Subchapter S corporations;
Taxing income earned by public electric utilities;
Capping nonprofit organizations' outstanding stock of tax-exempt bonds;
Taxing the Federal Home Loan Banks under the corporate income tax; and
Taxing qualified sponsorship payments to postsecondary sports programs.
As budget and tax talks continue, CUNA is urging credit unions and their members to use social media sites including Facebook, micro-video site Vine and other outlets to tell their legislators, "Don't Tax My Credit Union!"
Credit union and member tax advocacy efforts have remained strong. Almost 1.2 million separate congressional contacts have been made since mid-May to support credit unions in the tax talks.
For more on the Don't Tax my Credit Union efforts, use the resource link.