ARLINGTON, Va.–NAFCU is calling the latest attack on credit unions by the banking industry is nothing more than attempt to deflect attention away from the huge tax benefits it continues to receive.
As CUToday.info reported here, the Independent Community Bankers of America (ICBA) has launched a print and digital advertising campaign that asks if credit unions have “lost their way" and calls on Congress to "investigate."
“Congress granted credit unions a tax exemption nearly a century ago intended to help people of small means, but today many are exploiting it at taxpayers’ expense,” the ads state. “It’s time for another look."
In releasing the ads, the ICBA said the objective is to “inform Americans about the credit union tax exemption and its impact on financial services consolidation in local communities.”
The new print ads are running this week in editions of USA Today in Florida, Georgia, Illinois, Indiana, Michigan, Minnesota, and Wisconsin, and among the other claims made argue the tax exemption subsidizes credit union acquisitions of local community banks.
‘Baseless Attack’
“This is yet another baseless attack just as ICBA’s renewal season for membership is in full swing. ICBA may be trying to deflect policy makers attention away from the fact that the Tax Cuts and Jobs Act has provided bankers with $95 billion in tax relief since its enactment,” said NAFCU Vice President of Legislative Affairs Brad Thaler. “Out of the $95 billion, over $10 billion has been saved by community banks alone, far exceeding the amount of the credit union tax exemption. Additionally, they fail to disclose that one out of three banks pay no corporate income tax due to their S corporation structure.
“If ICBA truly cared about mergers between banks and credit unions, they would spend more of their resources devoted to figuring out and addressing the reasons why their members are giving up on banking and deciding to merge with credit unions,” Thaler continued. “The main difference between a credit union and a bank is that a credit union is always focused on helping their consumers and communities first. On the other hand, banks chase profits which ultimately hurts consumers. In their efforts to make profits, banks have not played by the rules resulting in $243 billion in fines since the financial crisis."