WASHINGTON (9/14/11)--The Credit Union National Association (CUNA) continues to advocate a member business lending (MBL) cap lift as one small piece that could be added to the Obama Administration’s larger plan to reinvigorate the ailing economy. Aside from a number of spending initiatives, the administration plan, known as the American Jobs Act, would provide payroll tax cuts for most businesses and “completely eliminate payroll taxes for firms that increase their payroll by adding new workers” or increasing the wages of current employees. Employers would also receive tax credits for hiring returning veterans and the unemployed, and the payroll taxes paid by individual employees would also be cut. The administration also proposes “reforms and regulatory reductions to help entrepreneurs and small businesses access capital.” CUNA has emphasized lifting the MBL cap to 27.5% of assets as another way that business owners could access the money needed to hire new workers and expand their businesses. Lifting the credit union MBL cap from the current 12.25% of assets restriction would inject more than $13 billion in new funding into the economy, at no cost to taxpayers, creating 140,000 new jobs in the first year after enactment. Among the spending priorities covered in the administration’s plan are:
*Renovating and modernizing public schools; *Infrastructure improvements aimed at repairing and modernizing roads, rails, airports and waterways; *Rehabilitating homes, businesses and communities; and *Expanding high-speed wireless internet access nationwide.
The plan also proposes some unemployment insurance reforms. Although the President urged Congress to pass his bill in its entirety when it was introduced late last week, the White House has reportedly said that Obama would sign portions of the bill separately.