WASHINGTON – Proponents of repealing the tax-exempt status of credit unions will fail, Rep. Sandy Levin (D-Mich), the senior Democrat on the tax-writing House Ways and Means Committee predicted Tuesday.
“Those who try to tamper with the tax status of credit unions will not succeed,” he told those attending NAFCU’s Congressional Caucus.
Levin said he has been a member of a credit union for more than 50 years, but has been particularly impressed by the growth of membership among his home state credit unions.
Levin said that in 2014, there were 4.5 million credit union members in Michigan; that membership has grown to 4.9 million this year.
Despite his prediction, Levin said he cannot predict what tax reform legislation will look like if Congress tackles the issue next year. The November election and other issues will help determine that, he said.
“Much of that remains speculative,” he said.
Levin said that the tax status of credit unions certainly will come up during tax reform.
“As always, you need to be on your toes,” Levin added.
Levin was one of several House members to address the NAFCU meeting Tuesday.
Rep. Brad Sherman (D-Calif), a member of the House Financial Services Committee, echoed Levin’s opposition to repealing the tax exempt status of credit unions.
He said he fears that as members of Congress write tax reform legislation, they will fall a couple of billions of dollars short of their targets.
At that point, bankers will provide the tax writers with an inflated amount of savings that could be gained by repealing the credit unions’ tax status.
“Do not allow them to come up with exaggerated views,” he said.
He added that credit unions must remain vigilant in their attempts to be heard in the nation’s capital.
“Mobilize your members and you will get what you need in Washington,” Sherman said.
Addressing the credit union exam cycle, Rep. Frank Guinta (R-N.H.) said he wants to ensure that NCUA Chairman Rick Metsger follows through on his promise to provide more flexibility in the process.
He said if the NCUA does not provide that flexibility, his legislation to expand the exam cycle will do that.
He also said he will continue his efforts to make the CFPB more accountable and force the agency to provide regulatory flexibility to credit unions.
“I’m not a big fan of the CFPB and they’re probably not a big fan of me,” he said.
