WASHIINGTON–The Defense Credit Union Council (DCUC) is expressing concerns over a person nominated for a position at Treasury, as well as over proposed legislation in Texas.
DCUC sent a letter to the Senate Finance Committee expressing “concern” over the nomination of Ken Kies as assistant secretary of the Treasury for Tax Policy.
“Given Kies’ history of advocating for the repeal of credit unions’ tax-exempt status,” DCUC said it is urging the committee to question him on his stance and seek a public commitment that he will not pursue policies that would undermine credit unions’ mission.
Added John McKechnie, who advocates on Capitol Hill for credit unions, “I’ve always been a believer in the ‘confluence of events’ theory of politics, and the possibility of Mr. Kies occupying the Assistant Secretary for Taxation puts a critic in what I would say is the wrong place at the wrong time for the credit union industry. His views that credit unions have outgrown their exemption are well-known on the Hill. The only questions now are whether he gets confirmed before the tax reform bill is written, and how strongly are credit union friends willing to push back against his advice when he weighs in on the legislation? I’d say him being in that chair at Treasury would be a bad break for our side.”
In its letter DCUC emphasized that removing this exemption would significantly limit financial resources and services for military families, “who already face unique financial challenges due to the military lifecycle.”
Opposition to Bills in Texas
Additionally, DCUC strongly opposed Texas Senate Bills SB 2026 and SB 2056 in a letter to the Texas Senate Committee on Business and Commerce.
“DCUC warned that these bills would disrupt the current payment system, benefiting large retailers at the expense of consumers while reducing access to affordable credit for service members, veterans, and their families,” the trade group said.
DCUC is urging lawmakers to reject these bills to :prevent financial harm to military communities and instead work on alternative solutions that promote fair competition without jeopardizing financial security.”
