WASHINGTON (3/25/14)--House Ways and Means Chairman Dave Camp (R-Mich.) notified colleagues Monday that the committee will move forward with hearings on his tax reform draft in April--first taking on the amorphous area of tax "extenders."
On Feb. 26, Camp released a much-anticipated tax reform plan. The specific credit union tax status was left untouched in the plan, an outcome for which the Credit Union National Association strongly advocated. CUNA, the state credit union associations and credit unions together amassed 1.3 million contacts with lawmakers urging them "don't tax my credit union."
The "extenders" referred to by Camp on Monday are dozens of temporary tax provisions that are renewed--often at the last minute Camp notes--over and over again. In sum, they can represent many billions of dollars annually.
Camp suggested that certain tax extenders should be "considered, and treated, as permanent parts of the baseline off of which tax reform is enacted."
"One important goal of tax reform is to provide certainty to American taxpayers. I think we can all agree that a short extension of tax policies is no way to legislate and is even worse for the families and businesses who utilize those tax benefits," he wrote to his tax-policywriting colleagues.
Camp maintained that the extenders confuse debate regarding what is the real tax revenue baseline.
Starting in April, Camp pledged, the committee will go policy-by-policy and through hearings and markup session determine what extenders should become permanent to the tax code. Specific dates and topics will be forthcoming.
CUNA will continue to monitor the tax reform process as it unfolds.
"While credit unions were untouched in the original tax draft, CUNA will continue to advocate for and educate about the credit union tax status as long as the tax reform process is alive," CUNA Executive Vice President of Government Affairs John Magill vowed.