Congressional committee estimates CU tax exemption to cost $10.3 billion over five years
The tax exemption continues to be a flashpoint between banks and credit unions.
The credit union tax exemption is estimated to cost $10.3 billion between 2019 and 2023, the congressional Joint Committee on Taxation said last week in its latest estimate of tax expenditures.
Unlike other estimates, such as those done by the Treasury Department, the joint taxation committee estimates the cost of such exemptions over five years. The committee releases estimates of all tax exemptions each year.
The Treasury Department estimates tax exemptions over 10 years. The Treasury Department earlier this year estimated the cost of the tax exemption at $21.878 billion between 2020 and 2029.
The joint tax committee gave several technical reasons why its estimates might differ from the Treasury Department, including the use of different methodologies for assessing tax exemptions.
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