Bush Victory Buys CU Insurance OnTaxes

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WASHINGTON - (11/05/04) -- The credit union lobby spentmillions of dollars on congressional elections the past twoyears--an estimated $5 million--but not a cent on the presidentialrace. But this week's reelection of President George Bush isexpected to reap millions of dollars of benefits for the creditunion movement by virtue of ensuring the federal tax exemption.Former NCUA Chairman Dennis Dollar pointed to the writtenassurances by the President on the tax exemption and the repeatedverbal assurances by top Bush Administration officials, such asTreasury Secretary John Snow and Assistant Treasury Secretary WayneAbernathy. "It would be very difficult for them to backtrack onthat, since they've been very public on it," Dollar told The CreditUnion Journal. "The Administration," said NAFCU lobbyist MurrayChanow, "has a policy in support of the credit union tax exemption.The President's position is not going to change, neither isSecretary Snow's." The President will also have a chance to shapecredit unions in other ways; through the Administration's continuedemphasis on financial literacy, a major priority of credit unions;its support of bankruptcy reform; and its opposition to theCommunity Reinvestment Act.

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