WASHINGTON–A former congressman who was close to the budget process has shared insights into the “sneaky” way tax policy can be changed in Congress.
In this case, that insider is America’s Credit Unions CEO Jim Nussle, the former Republican House member from Iowa who previously chaired the Budget Committee and who led the Office of Management and Budget. While concerns over the credit union tax status is an annual event at America’s Credit Unions’ GAC, speaking one day ahead of President Trump’s State of the Union address and in a year when the Trump tax cuts are set to expire, Nussle said in opening remarks to the GAC that credit unions need to understand how Congress really works.
Late Night Meetings
“Meeting happen among (congressional) leadership at two in the morning when they can’t figure out where the votes are going to come from or how to pay for something,” said Nussle. “Frankly, the conversation goes like this. ‘Who can we afford to piss off? Who hasn’t been noisy enough this year? Who can we get away with a sneak attack on their tax status?’ That’s what we’re going to work on this week. We want them to hear (during Hill Hikes)) in those small rooms (on Capitol Hill) whether they can afford to tax us. This is a tax increase on America, not a tax sneak attack on credit unions.”
Nussle said he will be paying attention to what, if anything, Trump says during the State of the Union about fiscal policy and the budget, noting there is a disagreement in Congress over whether they want to pay for the extension of the Trump tax cuts.
Where Credit Unions Come In
“That’s where we come in,” he said. “They have a couple of options. They can spending to pay for it, but that’s tough, as 86% of the budget is Social Security, Medicare, the military and interest on the debt. After that, there’s not much left.
“Another way is, frankly, to sneak in a tax increase, and I’ve been on the tax writing committee myself, and usually they try to sneak in a tax when you’re not looking,” Nussle continued. “We need to recognize if we’re not at the table telling our story we will definitely be on the menu.”
During GAC America’s Credit Unions launched its “Don’t Tax My Credit Union,” initiative, which will be the theme expressed by credit unions during Hill visits this week.
Other Frustrations
Separately, Nussle expressed several frustrations with the state of affairs in Washington, noting “D.C. stands for destruction and chaos.”
He also told GAC:
- Regulation by press release is ridiculous.
- While credit unions are under attack, money is being “sucked out of communities” in rural and inner city America by for-profit institutions.
- “And we don’t want any more regulatory sermons from new nominees who come in here telling us about consumer protections. I’m tired of regulatory sermons, and I know you are too, particularly when we were consumer protection before it was cool. We are about action, not just words.”
The Problem
Nussle said one challenge to credit unions when it comes to Congress is “Those guys have short memories, convenient memories sometimes, and they are distracted by the latest thing that comes along.”
Nussle pointed out that since the last tax cuts were passed in congress, 50% of its members have been replaced. In addition to the tax exemption issue, Nussle said credit unions will need to also put on a “full court press” over the CFPB, protecting interchange, fraud-related problems and data security.
About the Politics
The America’s Credit Unions CEO also addressed a touchy issue, the state of politics and the new administration.
“We learned again after this election that elections have consequences. That’s not a taunt, it’s a fact. It’s true whether you are happy or frustrated with the election,” Nussle said. “We as credit unions have to play the cards we have been dealt. We can’t wish it away or be frustrated about it. Yes, there’s chaos, but we have to embrace that chaos to some extent. I want to offer a prayer or a hope that as we think about our personal partisanship this week that we are partisan for credit unions.
“My other request is we listen to each other,” he continued. “It’s very easy to think that what’s happening in my world or my credit union is all that matters. But credit unions face these challenges all across the country. Be curious. Have an open mind and be respectful. There is so much more that unites us as credit unions than divides us.”
To that end, Nussle cautioned that opponents of credit unions are seeking to drive wedges wherever they can find them to divide credit unions.
Marking an Anniversary
This year’s GAC marked the 50th anniversary of the event, which began in 1976 at the Twin Bridges Marriott in Northern Virginia, which no longer exists. Larry Blanchard, who attended that first GAC and who continues to do advocacy work for TruStage, was also on hand for this year’s GAC.