ICBA thanked Senate Finance Chairman Orrin Hatch (R-Utah) for his letter 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.
“ICBA thanks Sen. Hatch for speaking out against the tax-exempt credit union industry, which for too long has enjoyed the benefits of competing with tax-paying community banks,” ICBA President and CEO Cam Fine said. “Sen. Hatch’s comments echo ICBA’s belief that the credit union model has become outdated and that its charter, purpose and tax-exempt status should be reviewed by Congress.”
Also this week, a Tax Foundation analyst
said lawmakers should reexamine the credit union tax exemption given changes in the financial services industry.
ICBA strongly supports repealing the tax exemption, which it strongly advocated during the tax reform debate.
Read Hatch’s Letter
Read ICBA Release