Georgia On My Mind

January 6, 2021 at 11:32 am Leave a comment

Hello, folks. Your blurry-eyed blogger has gotten off to a slow start this morning after watching John King and his magic wall detail what appears to be Senate victories that will put Chuck Schumer in charge of a 50/50 split Senate. Before I get to my regularly scheduled information, I can’t help but offer a few thoughts on what is occurring. 

Most importantly, with the exception of Georgia, no state stands to benefit more from the election results than New York. First, it raises the very real possibility that the Congress could agree on another round of stimulus funding, which trades liability protection for businesses for increased aid to state and local governments. With New York State facing a deficit of approximately $15 billion, this could translate into lower property taxes. We might also see a push to reinstitute the deductibility of state and local taxes in excess of $10,000, which was repealed as part of Congress’ federal tax cuts. 

Secondly, having a New Yorker in charge of the Senate is a big deal. In fact, keeping in mind that the President has changed his residency to Florida, Senate Majority Leader Schumer will become the highest-ranking New York Democrat since FDR. Not only that – the Senator is uniquely qualified to represent New York having worked in the Assembly and the House of Representatives before moving over to the Senate. He is New York politics through and through, and he has consistently told any credit unions that will listen that they’ll lose their tax-exempt status over his dead body. But even as we ponder what may happen, there are still a lot of new developments that your credit union will be responsible for implementing operationally. On that front, here is some good news. As I explained in this blog, the National Defense Authorization Act included legislation championed by New York Congresswoman Carolyn Maloney, which will make businesses responsible for identifying beneficial owners as part of the account-opening process. Under existing regulations, your credit union is responsible for finding out this information as part of the process. Under Section 6403, regulations will now be promulgated imposing reporting requirements on individuals identified as “beneficial owners,” a designation earned by any individual that “directly or indirectly, through any contract, arrangement, understanding, relationship, or otherwise (i) exercises substantial control over the entity; or (ii) owns or controls not less than 25 percent of the ownership interests of the entity.” The Treasury has two years from the date of passage to implement necessary regulations.

Entry filed under: Compliance, Economy, Federal Legislation, New York State, Political, Regulatory. Tags: , , , .

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Authored By:

Henry Meier, Esq., Senior Vice President, General Counsel, New York Credit Union Association.

The views Henry expresses are Henry’s alone and do not necessarily reflect the views of the Association. In addition, although Henry strives to give his readers useful and accurate information on a broad range of subjects, many of which involve legal disputes, his views are not a substitute for legal advise from retained counsel.

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