Newspaper article THE JOURNAL RECORD

Beach Has `Real Sense of Optimism' That Credit Unions Will Not Be Taxed

Newspaper article THE JOURNAL RECORD

Beach Has `Real Sense of Optimism' That Credit Unions Will Not Be Taxed

Article excerpt

Claiming that he sees "a real sense of optimism" that credit unions will not be taxed, Richard Beach, senior director of the Credit Union National Association's Washington office, brought Oklahoma credit union officials up to date on the association's lobbying efforts Friday.

Beach opened the 51st annual meeting of the Oklahoma Credit Union League by telling members that lobbyists are confident that they have the votes on the U.S. House Ways and Means Committee to pass an amendment to the Treasury II tax bill preserving the tax-exempt status now held by credit unions.

A proposal to tax credit unions with assets of $5 million or greater is included in Treasury II, the Reagan Administration tax reform proposal presently under consideration by the Ways and Means Committee.

Of the U.S. representatives that serve on the committee, Beach said currently eleven are willing to speak out in favor of credit unions; nine or ten members will "definitely vote for the amendment;" nine are leaning toward the amendment; three are undecided; and "four are committed to keeping the bill as it is," including committee chairman Dan Rostenkowski, D-Ill.

The Ways and Means Committee will consider the bill in closed session for approximately the next two weeks, Beach said, before reporting its version for consideration by the full House of Representatives.

"I would guess that they'll get to this about Oct. 15, if I had to pick a day," he said.

If the reported version does not include credit unions, he said, a favorable precedent will be set for retaining their tax-exempt status in the future.

"We don't want the tax bill to fall apart on the House side," he said. "We want them to vote on it and then it can fall apart (during consideration by the Senate Finance Committee).

"If credit unions got left in the Ways and Means bill," Beach said, "and the tax bill fell apart (in the full House), we will have lost, because the vehicle for taxing credit unions will be there, and could be attached to later legislation. …

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