House tax reform draft is another big win for credit unions
Just after the State Legislature handed Wisconsin credit unions a significant win by passing a regulatory reform package, Congress handed credit unions a huge symbolic victory as the House tax reform proposal maintained credit unions' federal tax status.
Significantly these developments also represent setbacks for the bankers who attempted to take away Wisconsin's independent credit union regulator and tax them at the federal level. On top of rejection of bank attacks, the House tax reform draft includes a proposal for a new 3.5 basis-point tax per quarter on banks over $500 billion.
While tax reform is unlikely to occur this session, maintaining the corporate income tax exemption in this draft was essential because this may become the starting point for future tax reform efforts.
"With the current tax reform measure such as
it is, our advocacy strategy will need to change to reflect the
situation on the ground," said Tom Liebe, Vice President of Government
Affairs for The League.
Therefore, credit unions should continue to advocate by strengthening relationships with decision makers through compelling stories of service and huge financial savings for consumers, which proved to be key to recent successes in the State Legislature as well.
You can thank your members for their role in our taxation advocacy thus far using The League's sample newsletter article.
If you have any questions, please contact Tom Liebe, VP of Government Affairs, at (608) 514-0082.
The Unite for Good effort is an internal growth strategy developed by CUNA in conjunction with its Board, state leagues, credit unions and system partners. The plan's action steps – to remove barriers, increase awareness and foster service excellence–are aimed at helping more credit unions become their members' primary financial institution by compelling members to see credit unions as their best financial partner. Read more articles in our Unite for Good series.