WASHINGTON—Ahead of a House Ways and Means Committee hearing to examine the corporate income tax, NAFCU's Brad Thaler touted the economic benefits and value of the credit union tax exemption, highlighting that "credit unions are a vital part of the financial services industry and provide their nearly 120 million members financial opportunities they may not otherwise have access to."
In the letter to the committee, Thaler, NAFCU's vice president of legislative affairs, pointed to a NAFCU-released independent study that found eliminating the credit union tax exemption would lead to a $142 billion reduction in GDP, cost the federal government $38 billion in lost income tax revenue and cut nearly 900,000 American jobs over the next 10 years.
"Credit unions help facilitate economic growth through lower loan rates, higher interest on deposits, and lower fees," wrote Thaler. "While for-profit institutions were unable to provide Americans with needed capital during the financial crisis, credit unions are proud of their service to Main Street."
Thaler also emphasized the corporate tax breaks banks received following the passage of the Tax Cuts and Jobs Act, which led to "many banks enjoying record profits in 2019."