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Federal Legislative Action Affects Credit Unions

Members of Congress have taken action on a number of issues affecting credit unions.

Credit Union Bill Moves Out of House Financial Services Committee

The House Financial Services Committee, which includes four members of the Missouri delegation, voted on H.R. 3468, the Credit Union Share Insurance Fund Parity Act, on November 14.  In a voice vote, the committee unanimously approved the credit union bill.

Also referred to as the IOLTA bill, the proposed legislation would extend National Credit Union Share Insurance Fund (NCUSIF) coverage for accounts such as Interest on Lawyers Trust Accounts (IOLTAs), so they  are treated for deposit insurance purposes on the same basis as similar accounts insured by the Federal Deposit Insurance Corporation (FDIC).

Missouri members of the House Financial Services Committee include U.S. Reps. William Lacy Clay (D-District 1), Ann Wagner (R-District 2), Blaine Luetkemeyer (R-District 3) and Emanuel Cleaver (D-District 5).  The Missouri Credit Union Association (MCUA) reached out to each of these legislators in advance of the mark-up of the bill, to encourage their support of the legislation.

Comprehensive Tax Reform Plan and Missouri Don't Tax My Credit Union Efforts

A plan addressing reform on international taxation was released on November 19 by Senate Finance Committee Chairman Max Baucus.  The proposal is the first of three drafts that will be released this week regarding comprehensive tax reform.  The international taxation plan will be followed by proposals on tax administration and capital cost recovery.  Baucus and House Ways and Means Committee Chairman Dave Camp are spearheading the charge for comprehensive tax reform, which last took place in 1988.  Baucus is seeking comments from companies and senators on his proposals by January 17.

As the efforts for comprehensive tax reform take shape in Congress, credit unions in Missouri - and across the country - are encouraged to keep up contacts with federal lawmakers regarding the importance of maintaining the credit union tax status using the "Don't Tax My Credit Union" (DTMCU) message.  The tax reform debate is expected to  continue through next year, and lawmakers are receiving anti-credit union messages from the banking community.   As of November 5, Missouri's federal delegation had received 14,871 contacts in support of credit unions through the DTMCU website. Nationally, more than 1.1 contacts have been made.

Use www.donttaxmycreditunion.org to send letters to the Missouri Congressional delegation or post a Twitter or Facebook message.  Credit unions are encouraged to engage credit union members in the credit union tax status effort.  There are resources available to help share the Don't Tax My Credit Union message with credit union members.

Contact Amy McLard, MCUA senior vice president of Advocacy, with questions regarding federal legislative issues.