WASHINGTON—With the Independent Community Bankers Association (ICBA) in town and credit unions always on their agenda, the House Ways and Means Committee was urged by America’s Credit Unions to protect credit unions’ tax-exempt status.
ACU sent a letter to the committee ahead of a hearing with Treasury Secretary Janet Yellen.
In the letter, America’s Credit Unions President/CEO Jim Nussle wrote, “The tax-exempt status afforded credit unions allowed them to reach out to areas banks could not and serve those that banks would not. By every account, this legislation has been an unparalleled success. Today, credit unions still stick to that basic mission of providing safe, affordable financial services products to Main Street America.”
Nussle further told the committee credit unions are member-focused and prioritize relationship banking due to their cooperative structure and common bonds.
Additionally, Nussle pointed out that the federal tax exemption provided by the FCU Act does not mean credit unions pay no taxes, as the industry pays roughly $25 billion in property, payroll, sales, and other taxes annually. He also emphasized the stability of credit unions compared to banks.
‘No Stockholder Pressure’
“Credit union managers don’t face stockholder pressure for maximum short-term profits. They also don’t have compensation packages that encourage risky market behavior. Thus, credit union managers avoid high-risk, higher return business practices. They also provide responsible loans and stable financial products to members,” he wrote.
Finally, Nussle also detailed the industry’s commitment to diversity, equity, and inclusion in both hiring and business practices.
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