WASHINGTON—America’s Credit Unions President and CEO Scott Simpson says the American Bankers Association’s latest push to reopen debate over the credit union tax exemption is not only unsurprising—but a “tragic waste of public energy” at a time when the nation has far more pressing issues to confront.
In an interview with CUToday.info, Simpson offered an unvarnished assessment of the ABA’s new survey, which claims 67% of consumers want Congress to reexamine the federal tax exemption for credit unions. Rather than revealing public sentiment, Simpson argued, the study reflects a “cycle” of manufactured controversy driven by banks seeking to protect their dominance in the financial-services market.
“It’s an immense waste of public energy. Of all the things our country has to deal with right now, it just blows my mind that banks—who have posted record earnings quarter after quarter—are chasing a minority player in retail financial services,” Simpson said. “It’s a tragedy, because it’s all based on a lie.”
Simpson emphasized that attacks on the credit-union model are old, describing the new survey as little more than another repackaging of long-standing talking points.
“This feels like the fourth or fifth shade of lipstick on the same pig,” he said. “It continues. It’s gratuitous. It’s irritating. And it’s deliberately deceptive.”
He argued the ABA is attempting to “occupy public energy” by casting credit unions as part of a broad category of “nonbanks”—including fintechs—to evoke emotion and sow confusion.
“They lump us in with fintechs and then attach all the baggage of that space to credit unions,” Simpson said. “From the outset, the instrument is misleading. They’re taking liberties in how they frame questions, and my guess is they’re aiding respondents to juice results and their numbers.”
Why Now? Simpson Points To Politics—And Opportunity
Asked whether he believed the bankers are ramping up for a coordinated push—especially with budget reconciliation discussions underway—Simpson said such timing would not surprise him.
“They’ll never miss an opportunity. Budget reconciliation, transition at America’s Credit Unions—whatever they perceive as an opening, they’ll take it,” he said. “I came from Utah, the hyper-center of bank attacks on credit unions. None of this is unfamiliar.”
He also suggested that bankers’ motivations extend beyond market share, noting that credit unions account for just about 9% of retail financial services.
“They don’t care about 9%. What they care about is the 91% of the marketplace they control, and how much they can charge for it,” Simpson said. “Our existence puts downward pressure on prices. That downward pressure represents billions of dollars in revenue that would otherwise come out of American consumers’ pockets and go into the back pockets of bank owners.”
He added, “It’s couch money to them to try to attack this industry.”
Survey’s Most Inaccurate Elements
When asked what stood out as most inaccurate in the ABA’s presentation of its findings, Simpson cautioned that any legitimate survey must start with transparent methodology—something he argues the ABA sidestepped.
“You always have to look at the instrument and the audience,” he said. “Until you know how the survey was designed and who they surveyed, everything is suspect. That’s Survey Research 101.”
Simpson noted that ABA’s own summary showed most Americans lack basic awareness of the credit union tax exemption—a fact he believes undermines the credibility of any subsequent policy conclusions.
“How can you argue the public is demanding congressional action on an issue they largely don’t even know exists?” he asked.
What The ABA Survey Claims
As CUToday.info reported, the ABA Thursday released new Morning Consult polling that it says supports congressional reconsideration of the credit union tax exemption—something that has not been the subject of a hearing in 20 years.
According to the ABA:
- 67% of consumers believe Congress should reexamine the exemption
- 58% say credit unions should pay federal taxes like banks, compared to 18% who disagree
- 83% of Americans are unaware credit unions do not pay federal taxes
- 64% say CUs should face the same disclosure and taxation requirements as other tax-exempt organizations
Simpson, however, views the survey not as a reflection of consumer attitudes but as part of a long-running strategy.
“They object to the fact we exist. That has always been at the heart of it,” he said. “But this industry has spent more than a century delivering financial freedom and economic opportunity. We’re going to keep doing exactly that.”
As CUToday.info reported, ACU responded Thursday to the ABA study, disputing the findings and highlighting what it called significant “misinformation” in the data.