Despite an increasein lobbying activity by credit union and bank advocacy groups onCapitol Hill over the credit union tax exemption, lobbyist Dan Mica said he doesn't think tax reform will happenthis year.

“There could be some piecemeal tax reform, but a major bill thisyear is going to be almost impossible,” said the former Floridacongressman who retired as president/CEO of CUNA in 2010. “Republicans aresplit among themselves and until they get their act together, Idon't think anything is going to happen.”

The Democrats have some division, too, he said of his own party.Other influences Mica said will impact tax reform – or a lackthereof – include a recovering economy that takes the pressure offthe federal government's need for revenue, and a president who iscautious to sign any tax bill.

“I'm not saying it will go away, but from the subtle signs I'veseen, the issue of tax reform will be kicked under the table,” Micasaid, adding, “but then again, I never say never when it comes toCongress.”

Mica applauded CUNA's “Don't Tax My Credit Union” campaign that provides credit unions with marketing materialsand directs members to a website that generates letters to membersof Congress. Although he said he's heard some criticize thecampaign for launching before any tax reform legislation iswritten, but Mica said credit unions should be proactive, notreactive.

“Once you're in the bill, you're behind the curve,” he said.

Should banks and credit unions face a tax reform showdown, Micasaid based upon history, he's confident credit union members wouldrise to the occasion and lobby Congress in support of theexemption.

Mica recalled the last time the exemption was threatened, he wasstunned at how much support credit unions received during debateson television and radio in which he faced off against bankinglobbyists.

Not only callers, but even employees working in the studiovoiced support for credit unions and opposition to banks.

“And that was back when (banks) were in relatively good favor,”he said.