Washington, D.C. (Feb. 19, 2020) —The Independent Community Bankers of America® (ICBA) applauded the National Taxpayers Union (NTU) for joining its call for Congressional oversight hearings in the face of mounting evidence suggesting credit unions have outgrown their tax-exempt status.
“Congress can no longer ignore the taxpayer-subsidized acquisition spree by large, growth-obsessed credit unions of tax-paying community banks,” said ICBA President and CEO Rebeca Romero Rainey. “ICBA agrees with the NTU brief’s findings that it’s poor tax policy to continue to allow 5 percent of credit unions to reap an estimated 75 percent of the industry’s tax-exemption benefits.
“It’s time policymakers ‘Wake Up’ to this dangerous trend, which exacerbates industry consolidation and reduces tax revenues for local communities, while giving these tax-exempt companies a pass on their founding mandate to serve people of modest means as Congress intended,” Romero Rainey added.
In recent letters to House and Senate committees, ICBA noted that credit union powers have expanded well beyond the limits established by Congress to justify that industry’s tax exemption, and encouraged the committees to consider legislative solutions, such as taxing the largest and most growth-oriented credit unions and expanding regulatory scrutiny of these transactions.
ICBA's request is part of its ongoing initiative to "Wake Up" policymakers and the public to the growing threats posed by tax-exempt credit unions.
The Independent Community Bankers of America® creates and promotes an environment where community banks flourish. With more than 50,000 locations nationwide, community banks constitute 99 percent of all banks, employ nearly 750,000 Americans and are the only physical banking presence in one in three U.S. counties. Holding more than $5 trillion in assets, nearly $4 trillion in deposits, and more than $3.4 trillion in loans to consumers, small businesses and the agricultural community, community banks channel local deposits into the Main Streets and neighborhoods they serve, spurring job creation, fostering innovation and fueling their customers’ dreams in communities throughout America. For more information, visit ICBA’s website at www.icba.org.
# # #