WASHINGTON—In response to an attack by a banking industry trade group that questioned credit unions’ tax exemption and more, NAFCU President and CEO Dan Berger and CUNA President and CEO Jim Nussle have authored a rejoinder.
In a posting in their various social media channels, including LinkedIn, Berger and Nussle said the “banks are at it again,” stating, “Credit unions do not misuse their tax-exempt status. In fact, the numbers show it is one of the best public policy investments the government can make. Credit union members saw more than $14 billion in economic benefits alone in 2022, and non-members received billions more in benefits due to credit unions’ presence in the marketplace.
‘Frivolous Tactic’
“This frivolous tactic by banks is an attempt to stifle competition, and it ignores the fact that a significant number of banks are Subchapter S corporations that do not pay corporate income taxes,” the trade group CEOs added.
A particular issue raised by the Independent Community Bankers of America and its CEO, Rebecca Romero Rainey, had to do with credit union acquisitions of banks, with the ICBA saying the moves hurt consumers and further call into question the need for the tax exemption.
“Data shows that credit unions are better for communities,” Berger and Nussle wrote.
Attempt to ‘Knee-Cap Credit Unions’
As for the bankers’ allegation that NCUA has not been looking out for the safety and soundness of credit unions, the two CEOs responded, “Credit unions deserve the same ability as banks to evolve with technology and consumer trends. Calling for hearings and government-funded studies of credit unions is just another attempt to knee-cap credit unions. And waste taxpayer dollars.”
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