NAFCU Blasts NASCUS Over Anti-TaxLobbying

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ARLINGTON, Va. - (0719/05) -- In an extraordinary letter thatunderscores the ongoing antipathy between credit union lobbyinggroups, NAFCU disparaged recent congressional testimony by NASCUSover the unrelated business income tax, known as UBIT, and insistedthat NASCUS clear any future lobbying on federal tax matters withNAFCU. "Our concerns stem from the fact that, although perhapsunintended, the NASCUS submissions have the potential to bring tothe public forefront the UBIT issue, as well as divide the creditunion community," wrote outgoing NAFCU Chair Diane Furnas in a June28 letter to NASCUS Chair Roger Little, obtained by The CreditUnion Journal. The letter refers to written comments on UBIT NASCUSsubmitted to the President's Advisory Panel of Federal Tax Reformon April 29, then to the House Ways and Means Committee, which isinvestigating tax-exempt institutions. Furnas said the credit uniontrade groups had agreed to keep issues like UBIT and the federaltax exemption at a low level of visibility, so as not to raise theattention of congressional tax-writers. The NAFCU Board, saidFurnas, insists that NASCUS refrain from "initiating any furthercontact with either (the President's tax panel or the Ways andMeans Committee) regarding any issues related to matters affectingfederal credit unions," and to inform NAFCU within the samebusiness day of any contacts with representatives of either of thetwo panels on credit union tax issues. The two lobby groups haveclashed on other issues in recent years; on the bid to allowprivately insured credit unions into the Federal Home Loan Banks,and the overhead transfer rate funding NCUA operations. NAFCUrepresentatives would not comment on the letter. NASCUS did notreturn phone calls from The Credit Union Journal seekingcomment.

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