CU Tax Exemption Remains Among Targets In Treasury Report

WASHINGTON– (Thursday, December 27, 2007) CUNA is expressing disappointment that credit union concerns were not addressed in a revised white paper on tax reform issues published by the Treasury Department. In response, the trade group has sent a letter to Treasury Secretary Henry Paulson seeking to meet and discuss the “importance of preserving the credit union tax exemption.”

Treasury issued the report, titled “Approaches to Improve the Competitiveness of the U.S. Business Tax System for the 21st Century,” as a revised version of a report it issued in the Summer of 2007 with revisions reflecting concerns of other parties, but not those of credit unions.

In its letter, CUNA said the report continues to focus on repealing various business tax breaks in the federal code, including that of credit unions. CUNA said the report does not explain why some entities mentioned in the summer document—such as state and municipal governments—have been removed from the list of tax preferences in the new draft. (Credit Union Journal )