CUs May be Facing Congressional Tax Battle

From CU Times

Friday 10/07/2005; 11:43 AM

WASHINGTON—CUNA’s top lobbyist and others are seeing the background work being done for consideration of credit union taxation.

With mounting pressures on the federal budget from the War on Terror and Hurricanes Katrina and Rita, a buzz has begun inside the beltway regarding credit union taxation. "We have learned that the Ways and Means Committee staff are beginning to look at the legislative history" of credit union taxation and service to the underserved, according to CUNA Senior Vice President John McKechnie.

Credit unions have been eyeing activities in the Ways and Means Committee ever since Chairman Bill Thomas (R-Calif.) announced 18 months ago that he would look into the tax exemption of certain non-profits, using credit unions as an example. However, McKechnie said, "Our best friends on the committee…are saying we need to be on our toes."

Something could possibly take shape as early as this week, he added, though nothing has been scheduled yet.

CUNA held a conference call recently on the matter.