ICBA asked Senate Finance Committee Chairman Orrin Hatch (R-Utah) to convene a hearing on the credit union industry’s tax exemption. In its letter, ICBA said modern credit unions have failed in every aspect of their public mission and pose a threat to the American tax base.
The request follows an ICBA-supported letter from Hatch
to the National Credit Union Administration expressing concern that credit unions may be operating beyond their tax-exempt purpose. Noting that the credit union tax exemption is valued at approximately $2.9 billion this year, Hatch cited several of the NCUA’s ICBA-opposed actions, including rules on field of membership, commercial lending, and alternative capital.
“The credit union tax subsidy is the elephant in the room,” ICBA wrote. “It is widely understood but rarely acknowledged that the tax exemption has outlived its purpose. Now is the time to have that discussion.”
Read ICBA Letter