In Wake of Reagan's Death, Credit Union Groups Recall His Administration's Failed Taxation Attempt

WASHINGTON-Last Friday was declared a national day of mourning by President George W. Bush as former President Ronald Reagan, 93, was laid to rest. Many may not remember, but Reagan’s Administration almost put a tax burden on credit unions. In May 1985, during the Reagan Administration, the Treasury Department introduced a bill to simplify the tax system, which included taxing credit unions of $5 million or more, NAFCU Communications Manager John Zimmerman said. After a number of representatives from the credit union community testified before the House Ways and Means Committee, the provision was removed in October of that year and the Tax Reform Act of 1986 was eventually signed into law. Reagan did not however have a bad relationship with credit unions. Over the eight years Ronald Reagan was president (1980-1988), credit union representatives met with him on a couple of occasions, a demonstration of credit unions’ growing political prowess. CUNA Senior Vice President of Governmental Affairs John McKechnie met with President Reagan at a political function in 1988. NAFCU Senior Vice President and General Counsel Bill Donovan had the opportunity to meet Reagan on the occasion of the 50th anniversary of the signing of the Federal Credit Union Act on October 24, 1984. On August 11, 1983, President Reagan signed a congressional resolution making the week of June 24, 1984 “Federal Credit Union Week.” The credit union community had tried to arrange for a public bill signing, but it was not possible, so the photo was taken at an event held after the bill signing. CUNA Vice President of Legislative Affairs and Senior Legislative Counsel Gary Kohn explained that Reagan was lying in state last Wednesday evening and all day Thursday in Washington, “so that will definitely have an impact on what happens here in Washington this week.” Friday morning his body was being sent back home to California. Reagan’s death has caused some delay in the already waning congressional schedule. Concrete evidence of this was the closing of most of the federal government, including both chambers of Congress and NCUA, on Friday, June 11. Additionally, the Senate Banking Committee hearing on the renomination of Alan Greenspan as chairman of the Federal Reserve Board was postponed from June 10 to June 15. [email protected]