Written by Carrie Hunt, Chief Advocacy Officer, America’s Credit Unions
The U.S. House passed a budget resolution that sets the framework for tax reform discussions. The Senate previously passed the resolution, which means Congress now can begin drafting legislation.
There is nothing within the framework that directs lawmakers on the credit union tax status; it simply sets the parameters of tax and spending cuts that will be required by the framework. But with both chambers passing the budget, it moves Congress one step closer to passing comprehensive tax reform and spending cuts. The House is aiming to have its version of the package finalized by the end of May. In terms of next steps, the House Ways and Means Committee will continue working on drafting language; then we will see a discussion draft from the committee; the bill language then will be voted out of committee with or without amendments and go to the full House floor.
While timing is fluid and can change quickly, with the budget resolution being finalized we expect the House tax writing committee to consider the tax reform bill in the next month, with the full House of Representatives voting on the bill before Memorial Day. This legislation is moving quickly.
Now is the time to step up our advocacy efforts to protect the credit union tax status. Credit unions must launch their grassroots advocacy and make sure members of Congress hear the voice of our nation’s 142 million credit union members.
Lawmakers are headed back to their districts for two weeks. It’s an opportunity to engage with your elected officials at home, on top of grassroots outreach from you, your staff and board. So, engage your elected officials. Encourage your members to contact them, too. Share how credit unions support the Trump Administration’s goals for a vibrant national economy and financial prosperity. We need your voice now. All of our Don’t Tax My Credit Union resources are available online, and if you haven’t done so yet, sign up for the Member Activation Program to get materials for your members. I also ask you to consider supporting the National Advocacy Fund so that we can continue our unified campaign to spread the credit union difference.
In addition to your work on grassroots, America’s Credit Unions and our league partners are continuing to meet directly with lawmakers, run political advertisements, engage social media influencers and the press, and employing other direct advocacy messages.
Credit unions are a critical component of a strong economy—with an estimated $27.5 billion in direct benefits and $38.3 billion in total benefits to American families. Removing it would be a significant hit to our economy, losing $33 billion in income tax revenue, reducing GDP by $266 billion, and costing 822,000 jobs over 10 years according to recent research.
Our industry serves the very people who President Trump and elected officials have promised to support: Farmers, veterans, military members, teachers, first responders, small businesses, families. More than 140 million Americans rely on you as their trusted financial partner and putting a new tax on credit unions would be a new tax on them. Nearly 70% of voters want Congress to oppose any new tax increases.
If you have any questions about what’s next in this process or our efforts, please don’t hesitate to reach out to your League or our Advocacy Team.
