The House passed its budget resolution in a 216-214 party-line vote on April 10, setting the stage for Congress to begin its reconciliation process, which is expected to include discussions about extending the 2017 Tax Cuts and Jobs Act cuts while implementing additional cuts, reducing spending, and raising the debt ceiling.
In response to bill’s passage, America’s Credit Unions (ACU) President and CEO Jim Nussle issued a statement urging President Donald Trump and Congress to “advocate for priorities that strengthen the financial well-being and create opportunities for working Americans and small businesses.” One of the best ways to do this, Nussle claimed, would be to preserve the federal tax exemption for credit unions. He insisted that removing it would be a “significant hit to our economy, losing $33 billion in income tax revenue, reducing GDP by $266 billion, and costing 822,000 jobs over 10 years.”
Not all of the budget bill’s proposed measures are proving popular with the financial services industry.
The Independent Community Bankers of America (ICBA) and several other trade organizations both in and out of the financial sector expressed opposition to a Republican-introduced measure that would impose a 40 percent income tax on the country’s wealthiest individuals. ICBA President and CEO Rebeca Romero Rainey claimed doing so would “disproportionately harm hundreds of thousands of pass-through businesses organized as S corporations, partnerships, and sole proprietorships.”
Learn about other views expressed by the financial services industry regarding recent developments in Washington, D.C., in this roundup:
Trades push for level playing field for data collection requirements
Three banking and credit union trade groups submitted a joint letter pressing the Consumer Financial Protection Bureau (CFPB) to establish a “level playing field” between regulated financial institutions and less-regulated businesses with respect to the collection of personal financial data. The letter was in response to a request for information (RFI) issued by the bureau in January under former CFPB Director Rohit Chopra. The trade groups – the American Bankers Association (ABA), the ICBA and ACU said their preferred resolution would be for the Trump administration to rescind the RFI. In lieu of this outcome, the associations recommended the CFPB focus its regulatory and examination resources on leveling the playing field between depository institutions and less regulated technology services providers and updating the credit reporting model form to provide more clarity to customers and financial institutions. Read more here.
Michelle Bowman receives community banking support for Fed nomination
Romero Rainey wrote to Senate leaders in support of confirming Michelle Bowman to be the new chair of the Federal Reserve. Romero Rainey highlighted Bowman’s experience as a “fifth-generation community banker” who filled the designated community bank seat on the board at the Fed in 2018, noting ICBA’s advocacy efforts leading up to her confirmation as the first person to fill the seat following its creation. “Her background as both a banker and regulator has given her a deep appreciation for the unique and indispensable role that community banks play in the American economy,” she added. Read more here.
MBA announces new associate VP of government housing finance
The Mortgage Bankers Association (MBA) announced the promotion of Brendan Kelleher to the role of associate vice president of government housing finance. Kelleher will be taking the lead in executing the trade organization’s policy priorities for residential government housing and regulatory advocacy, according to a press release. He also will be tasked with developing and strengthening agency and industry relationships, as well as managing key MBA committees. Read more here.