Latest ICBA Email Targets Credit Union Tax Exemption; CU Trades Unimpressed

November 20, 2012 by Credit Union Times

The Independent Community Bankers of America aren’t taking a holiday break from attempts to repeal the credit union tax exemption, sending an email to all Capitol Hill offices on Monday pushing the agenda.

The message, sent from ICBA Administrative Assistant Alison Sampson with the subject line, “Credit Union Subsidy Costs Taxpayers Billions,” cited H.R. 6474, a bill that mistakenlyincluded credit unions with other tax reforms. The bill helped “reignite the controversy over the credit union tax subsidy,” the ICBA said.

The email also sourced a Tax Foundation estimate that valued credit union tax exemption at more than $30 billion over 10 years.

“Lending by tax-exempt credit unions displaces lending by taxpaying banks, thereby reducing tax revenue to the government and increasing the deficit,” the ICBA said. “At a time when the federal budget deficit is over $16 trillion, we cannot allow the American taxpayer to subsidize credit unions.”

NAFCU Vice President of Legislative Affairs Brad Thaler said he’s not surprised by the Thanksgiving week pitch from the ICBA, saying lame duck fiscal cliff negotiations between the White House and Congress could “lock in parameters for tax reform” in 2013.