Credit union trade associations are wary of a presidential advisory panel report on potential tax revisions that includes elimination of credit unions' tax exemption. While leaders have been quick to put the findings into perspective, advocates should be prepared for swift action.
The 16-member Presidential Economic Recovery Advisory Board (PERAB) is not part of the Obama administration, but its report offers suggested action for tax revision and reform. Among the subsection "Eliminate Other Tax Expenditures" appears the suggestion of eliminating the federal credit union tax exemption. Also present is the ever-present banker call to "level the playing field."
In a news item, CUNA President/CEO Bill Cheney notes, "Credit unions should be aware that the advisory board report is simply an exploration of all policy-change options." Cheney further reminds that banker rhetoric and attacks are nearly constant, as will be CUNA's persistence in asserting the credit union difference.
"Those who operate for profit are sure to seek every opportunity for advantage," added
South Carolina Credit Union League President and CEO Steve Fowler, "and the growing federal deficit will make it increasingly incumbent on government to find revenue sources."
Noting CUNA's position, he suggests South Carolina credit unions strike a balanced posture.
"We have seen this kind of situation before, yet we've also seen government move unusually quickly at times," Fowler said. "Considering the report's use of a known catch phrase among for-profits, credit unions should remain proactive for now and poised should this develop into a perfect storm."