Three things lawmakers should consider for tax laws

When a new party comes into the White House, with control of Congress, it raises or lowers federal taxes according to its priorities. President Biden has laid out ambitious spending plans and expects to pay for a portion of it with increased tax revenues. Income taxes and capital gains taxes are obvious targets, although the President has pledged not to raise income taxes for people earning less than $400,000 per year.  [Continue]

Expected tax law changes will impact banks

Banks may get pulled into an effort to collect more of the taxes the federal government says it is owed. Mel Schwarz, director of legislative affairs for Eide Bailly, told bankers that Form 1099 reporting may be expanded so that banks have to report deposits and withdrawals of wealthy customers. This would include individual taxpayers and pass-through business entities. [Continue]

The balance of state, federal laws

One of the benefits of living in a country made up of several states is that progress can be made at the state level on important issues when it seems progress is unlikely at the federal level. In banking, there is recent progress on parity for banks with non-taxed competitors in a few states even if the issue is stalled in Congress. [Continue]

Pandemic raises stakes on debit card issue

The 10th anniversary of the Dodd-Frank Act came in the midst of the pandemic, when debit card usage was surging. The Durbin Amendment to Dodd-Frank requires card issuers to enable cards to operate on at least two unaffiliated debit networks. Sen. Richard Durbin, (D-Ill.) recently wrote to the Federal Reserve about his concern that the largest card issuers are ignoring the rule at a time when card usage is skyrocketing, resulting in higher fees for merchants and, therefore, consumers. [Continue]

Bank Secrecy Act overhaul works its way through Congress

In May, the House Financial Services Committee approved the COUNTER Act to modernize and reform the Bank Secrecy Act. The bipartisan bill (H.R. 2514) sets out to curb money laundering and illicit financial activities. It awaits a vote on the House floor.  [Continue]

Tech activity demands ILC shift

Banks and technology companies can form great partnerships, but policymakers should watch how these two industries interact, and intervene if equal access to credit or financial stability is threatened. The country has long benefited from laws that separate commerce from banking; this separation may be more important than ever as the world grows more technologically capable. [Continue]

Iowa bill a win for banks on CU names

A bill signed into law by Iowa Governor Kim Reynolds earlier this month contains a provision on credit union naming that presents a win for the state’s banks, according to the Iowa Bankers Association. [Continue]