WASHINGTON–The Independent Community Bankers Association of America (ICBA) has created a letter-to-the-editor template it is sending to its member banks around the country that they, in turn, can send to local media.
The form letter follows failure to date by the banking lobby to eliminate the credit union tax exemption in either of their tax reform bills before the House and the Senate.
The letter is critical of the tax exemption, as well as NCUA for its interpretation of field of membership.
“It’s time to put an end to the credit union free ride and power grab,” the template letter reads. “If credit unions want to act like banks and serve virtually all Americans, including online communities, they should become banks and adhere to the same rules and guidelines that govern taxpaying institutions.”
“In truth, today’s credit unions are nearly indistinguishable from traditional banks, yet siphon top-performing small-business loans away from community banks by leveraging their tax-exempt status,” the letter continues. “Keeping these costly and outdated subsidies out of our federal tax code would provide for a fairer financial marketplace that ensures taxpayer dollars aren’t used to tip the scales.”