Pub. 5 2010-2011 Issue 5

www.nebankers.org 20 Extraordinary Service for Extraordinary Members. Reach Keith Leggett by e-mail at kleggett@aba.com. Read Leggett’s blog at http://creditunionwatch.blogspot.com . [ NOTE: Both the Office of Management and Budget and the Joint Committee on Taxation identify the credit union tax exemption as a corporate tax expenditure. Read more at www.whitehouse. gov/sites/default/files/omb/budget/fy2011/assets/receipts.pdf and www.jct.gov/publications.html?func=select&id=5. ] The commission’s report stated that eliminating busi- ness tax expenditures would allow the corporate tax rate to be lowered and help reduce the deficit. Lower corporate tax rates will make American businesses more competitive, and abolishing special subsidies will cre- ate an even playing field for all businesses instead of artificially picking winners and losers. While the commission’s deficit reduction plan fell short of the votes needed to present its recommendations to Congress for a vote, a bipartisan majority—11 of 18 members—voted for the plan. This commission has provided a valuable service in advancing the discussion, but the path to fiscal sus- tainability won’t be easy. The special interests, which include credit unions, their trade associations, and federal regulator, will vigorously fight to preserve their favorable tax treatment. Read the complete report from the National Com- mission on Fiscal Responsibility and Reform at www. fiscalcommission.gov/sites/fiscalcommission.gov/files/ documents/TheMomentofTruth12_1_2010.pdf. Z T HE REPORT RELEASED LATE LAST YEAR BY THE National Commission on Fiscal Responsibility and Reform fell short of the 14 votes needed for a congressional vote on the plan. Entitled “The Moment of Truth,” the report contains various recom- mendations for reforming the corporate tax code, includ- ing the elimination of all corporate tax expenditures as well as the credit union tax exemption. credit union watch: keeping an eye on the credit union scene Commission Advances Discussion of Credit Union Tax Exemption Keith Leggett, Senior Vice President & Senior Economist, American Bankers Association