WATERLOO, Iowa — Several members of Congress, as well as one candidate for congressional office, said during a forum here they would be receptive to reviewing the status of the credit union tax exemption.
During the forum hosted by the Community Bankers of Iowa at Prairie Meadows Convention Center here, where both Democrats and Republicans were on hand, the conversation included a question related to the CU tax exemption.
According to the Quad City Times, several Republicans on hand said during the forum that was primarily about the regulatory burden that they are open to discussing how credit unions fit into that discussion.
“Banks have grown increasingly concerned that some large credit unions continue to enjoy more relaxed tax and regulatory structures despite growing to offer services similar to banks,” the Quad City Times reported.
The Republicans also said that some credit unions may have outgrown their charter. But that comment was also echoed by a Democrat who is running for office.
“If they do the same things (as banks), they should be taxed at the same rate,” said Chris Peters, a Republican running for Congress in eastern Iowa’s 2nd District. “If they’re straying outside their original charter, I think they should be taxed the same (as banks).”
“I would definitely support reviewing the regulations and seeing if they actually fit today,” said Kim Weaver, a Democrat running for Congress in western Iowa’s 4th District. “They are, in some parts, unfair to community banks.”
Jon Murphy, director of government affairs for the Iowa Credit Union League, who was on hand for the forum, responded, “We’re not-for-profit; they are for-profit. Both models are fine and they work for Iowans, and that’s a good thing. Iowans get choice and competition when they have strong banks and strong credit unions.”
Separately, the Quad City Times reported that Democrats and Republicans at least partially agreed that portions of the regulations implemented after the 2008 financial crash, including Dodd Frank, are unfair to smaller institutions. In addition to credit unions, the forum also discussed the farm credit program and suggested it, too, had expanded beyond its intended purpose.
Long time Iowa Representative told the forum the federal executive branch has been granted too much rulemaking authority and called for all new regulations to be passed through Congress, according to the Quad City Times.
“We need to make sure that no regulation that goes into effect does so without an up or down vote of the Congress of the United States,” said Chuck Grassley, Iowa’s longtime Republican U.S. senator who is being challenged by Democrat Patty Judge. “We’ve delegated too much power to the bureaucracy.”