The House Wednesday cleared the conference report on the huge tax overhaul bill that preserves the credit union tax exemption, but the battle may not be over.
Congress sent President Trump the tax bill, but congressional leaders already have warned that a so-called technical corrections bill likely will be necessary to fix unintended consequences and errors in the legislation.
The House vote was 224-201.
That is often the case with such a large bill and House Ways and Means Chairman Kevin Brady (R-Texas) said he already is working on such a measure.
“The credit union tax status remains untouched in the bill, but there will very likely be an attempt to make corrections and that could once again put our tax status in jeopardy,” CUNA President/CEO Jim Nussle warned.
The House on Wednesday had to make a few technical corrections to the bill because it violated the so-called “Byrd Rule” in the Senate. That rule, named after former Senate Majority Leader Robert Byrd (D-W.V.), restricts extraneous material from being included in a reconciliation bill. It was an amendment to the Budget Act of 1974.
The Senate deleted the tax bill provisions and adopted the conference report. The House adopted it Wednesday.
House Rules Committee ranking Democrat Louise Slaughter (D-N.Y.) said such errors were inevitable because of the poor process used to write the measure.
“Imagine what errors we have yet to discover,” she said during Wednesday’s debate. “I know this is not the last time we will be here to fix this bill.”
Nussle said that credit unions will be prepared for that fight.
“If we need to make our voice heard once again as we head to the finish line, we’ll call on you,” he said, in a message to CUNA members.
NAFCU President/CEO B. Dan Berger also has emphasized the need for the tax exemption.
“The preservation of the credit union tax exemption is vital for the 110 million Americans who are credit union members,” he said.
Bankers also said they will be prepared for any future fight.
“Congress should treat businesses providing the same services the same way and that is not happening today,” ABA President/CEO Rob Nichols said. “We will continue to argue for a level playing field until Congress ends this inequity.”
