Wednesday, May 31, 2017

Size of CU Tax Exemption Jumps by 32 Percent

President Trump's Budget estimated that the tax expenditure arising from the credit union tax exemption is $35.3 billion over the next ten fiscal years.

This estimate of forgone tax revenues is up 32 percent from the estimate in last year's Budget by the Obama Administration at $26.7 billion.

According to the American Banker, the jump in the size of the tax expenditure is attracting the attention of both credit union and community banking advocates.

John McKechnie, a credit union industry lobbyist, stated to the American Banker that "this increase is noteworthy"; but also cautioned credit unions to not underreact or overreact to this information.

Read the article (subscription required).

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