WASHINGTON (2/23/12)—While the Obama administration's new corporate tax reform plan calls for a wide-range of corporate tax law changes, nothing in the proposal specifically targets credit unions, the Credit Union National Association (CUNA) has found.
The 25-page proposal seeks to lower the overall corporate tax rate across the board to 28% from 35%. It would eliminate many corporate tax loopholes and broaden the tax base, but would also expand access to some corporate tax deductions, and make some temporary deductions permanent.
CUNA President/CEO Bill Cheney noted Wednesday, "While credit unions are not mentioned specifically, the administration's plan does speak broadly of starting 'from a presumption that we should eliminate all tax expenditures for specific industries, with the few exceptions that are critical to broader growth or fairness.'"
"We believe, of course, that credit unions are essential to broad economic growth and that we provide fairness to consumers and small businesses in the financial marketplace. In recent months we have made this point repeatedly in multiple discussions with senior officials in the White House, at the U.S. Treasury and with key members of the tax-writing Senate Finance and House Ways and Means Committees," Cheney said.
Debate over the tax proposal is expected to be contentious, and Cheney said it could continue into next year. CUNA will, he said, continue to remain "engaged and vigilant" as the debate move forward.
"Preserving credit unions' tax status remains our highest legislative priority," the CUNA leader added.