NAFCU gives lawmakers the facts in bankers’ misleading attacks against CUs

Bank lobbyists are continuing to push misleading attacks against credit unions to lawmakers, but NAFCU is setting the record straight by providing the facts on the benefits of the credit union tax exemption and more.

“While bank lobbyists once again funnel their resources into frivolous attacks during the pandemic, credit unions will continue to do what they do best: responsibly serve more than 124 million Americans, support Main Street’s economic recovery, and invest in community outreach efforts – all without having to be told to do so,” said NAFCU President and CEO Dan Berger. “The truth is, removing the credit union tax exemption would lead to a $142 billion GDP reduction, costing $38 billion in lost income tax revenue and eliminating 900,000 jobs.

“Consumer choice and competition is good for economic growth, and consumers are making a conscious choice to seek out a cooperative financial services model where they have a seat at the table. NAFCU urges policymakers to outright reject any and all attempts to impair the good work of not-for-profit credit unions as they help their 124 million members.”

Bankers have long tried to eliminate credit unions’ tax-exempt status, failing to acknowledge its economic benefits and not disclosing that the banking industry received tens of billions of dollars in annual tax breaks for the Tax Cuts and Jobs Act and nearly one-third of banks are Subchapter S corporations that do not pay corporate income taxes.


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