Democratic Group Proposes CUTax

WASHINGTON - (06/08/05) -- An influential group of DemocraticParty policy makers has issued its own proposal for tax reform thatwould, among other things, repeal the federal tax exemption forcredit unions over $10 million in assets. The proposal, issued bythe Democratic Leadership Council made of lawmakers and activistsin the Democratic Party, would broaden tax breaks for home loans,student loans and families by closing a number of loopholes andrepealing certain exemptions, including the one for 'large creditunions,' which it defines as those over $10 million. The proposalwould raise an estimated $1.5 billion a year in taxes from thosecredit unions, the group said. The proposal is expected to attractlittle congressional support--Democratic presidential nominee JohnKerry who wrote supporting the credit union exemption is a memberof the DLC. The credit union lobby has begun opposing the creditunion provision. "We've already been in contact with certainmembers of the DLC and will be contacting other members," CUNAlobbyist Gary Kohn told The Credit Union Journal.