Credit Unions: Keep Your Friends Close and Your Enemies Closer
What were you doing yesterday morning? I’ll bet at some point in the day you checked your Facebook page, Twitter account, texts and/or emails from your friends. You are up to date on their latest personal news and probably credit union news as well, being the savvy credit union professional you are.
Last week the House Ways and Means Committee invited credit union leadership to discuss the credit union tax status, I am sure you read about it. I do wonder if you knew that this week the American Bankers Association held a keynote session aggressively titled, “Credit Union Taxation: Now is the Time” making their case against credit unions to the Chairman of the House Financial Services Committee, Hon. Jeb Hensarling, and the Chairman of the White House Council of Economic Advisors, Alan Krueger.
While you are connected to your friends and professional allies; are you tuned into the forces working against you as well? It seems common sense to say that information yields power, but I write this article as a reminder to adjust your reading and viewing habits, as well as, social media subscriptions to be sure you cover all sides of the story to garner the most knowledge.
Here is an example of what a little counter intelligence can generate. Below is an excerpt from a letter written by ABA President and CEO, Frank Keating to the Senate and House Leadership:
“First, credit unions were never intended to be untaxed banks, yet that is what many have become. Today, the average person cannot distinguish between a credit union and a bank, so why should our tax system give preference to credit unions?”
This statement was only one of recent letters, media interviews and radio ads hitting the airwaves here in Washington, D.C. all aimed at taxing credit unions.
After you are finished cringing, ask yourself the question, what do I do with this statement?
There are several proactive things you can do.
First, the credit union movement must combat any misunderstandings both to Congress and to the American people about the charter and mission of credit unions and how they differ from banks. Many credit unions are doing this extraordinarily well like the Missouri Credit Unions Association’s “Bank on MOre” campaign which educates consumers about both the distinctions and similarities among credit unions and banks.
Second, credit unions should continue to actively engage their Members in Congress on any legislation that is being considered to change the credit union taxation laws. Credit union grassroots, leagues and associations must join together as one voice to amplify the message that the credit union tax status is unique due to their not-for-profit cooperative mission.
Finally, take a minute to sign up for the American Banking Association newsletter (www.aba.com), as well as any other resources you can find that argue against the credit union movement. Use this knowledge to fuel your passion for credit unions and combat the forces that campaign against your hard work.
Make no mistake about it, there is a high probability that there will be debate and discussions on Capitol Hill regarding the taxation of credit unions. Also understand that credit unions opponents will be making their case with facts, figures and rhetoric to support their position. As the battle heats up every Member of Congress will be well acquainted with the arguments from both sides.
It is extremely important that you are knowledgeable of what is being said about credit unions, both fact and fiction, in order to properly defend your position. I honestly believe credit unions will win, but also believe there almost certainly will be a major battle.
While it is great to see an update that a friend has just welcomed a new baby to the family or that a colleague has won a respected industry award, it is professionally important that you widen your horizons to include some sites and publications that contain the views of your opponents. It may be irritating but the knowledge will always assist in achieving your goals.
