WASHINGTON—In the wake of a claim by the National Taxpayers Union that credit union acquisitions of banks “raise questions” over the CU tax exemption, America’s Credit Unions has sent a response it says highlights “inaccuracies.”
As CUToday.info reported here, the NTU has argued that when credit unions purchase banks, they are removing a taxed business from certain types of tax rolls,” and further stated that “credit unions across the country have shifted away from the original intent of their creation and now rival major financial institutions. As Congress explores options to extend the Tax Cuts and Jobs Act of 2017 and otherwise create a tax code with lower rates and a broader base, it should closely examine the tax status of large credit unions…”
‘They Do Not Understand Credit Unions’
In its response to the National Taxpayers Union, America’s CUs said of the authors, “While Mr. (Joe) Bishop-Henchman and Mr. (Matthew) Putnam may be knowledgeable about tax policy, they clearly do not understand credit unions, the purpose they serve in the financial services industry, nor the role they serve in helping Main Street America,” wrote ACU Chief Advocacy Officer Carrie Hunt.
Hunt stated that credit unions continue to live their mission of serving all Americans while evolving “to provide a modern approach to what consumers need.”
Hunt further stated the claim credit unions have grown larger than Congress intended is inaccurate, as Congress placed no cap on the size of a credit union. Instead, she told the group credit unions were created to put people over profits and meet the credit and savings needs of consumers.
‘The Credit Union Difference’
Moreover, Hunt said credit union growth “is because more Americans every day are seeing the credit union difference and choosing to leave big banks for institutions they trust and where they are valued.” She concluded by noting the data shows credit union members saw more than $21.5 billion in economic benefit because of credit unions.
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