House Ways and Means Committee Chairman Dave Camp's (R-MI) said the tax exemption for credit unions is "not going to be addressed" in his draft tax reform plan unveiled Wednesday afternoon.
NAFCU reacted favorably to the news.
"Today's draft, based on our initial review, is good news and consistent with what NAFCU lobbyists have been hearing all along — that Congress has no appetite for repealing credit unions' federal tax exemption," said NAFCU President and CEO Dan Berger in a statement.
Though Camp's discussion draft is essentially "hands-off" on the CU exemption, Berger said NAFCU will review "the document closely for any other provisions that may be important to credit unions, including its treatment of unrelated business income tax. Federal credit unions are exempt from UBIT due to their status as instrumentalities of the federal government, and NAFCU is working to ensure that continues."
Camp's proposal is the initial salvo in an effort to enact the first major overhaul of the tax code since 1986
Senate leaders have indicated, however, that they will not take up tax reform this year.
Camp said his proposal's changes on average would put an extra $1,300 in the pockets of a family of four earning $51,000 from lower taxes and higher wages.
The standard deduction would increase to $11,000 for individuals and $22,000 for married couples. Under his "simpler, fairer" proposal, 99% of taxpayers would face rates of 25% or less, according to Camp.
