As a banking trade group recently made yet another attempt to stifle credit unions’ ability to serve their 124 million members and reach underserved communities by sending a message to the Hill urging lawmakers to subject the credit union industry to more regulations and remove the credit union tax exemption, NAFCU is setting the record straight.
“This is another attempt from bankers to rewrite the narrative with falsities, instead of taking ownership,” 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.
“While bank lobbyists once again funnel their resources into frivolous attacks, credit unions will continue to do what they do best: Responsibly serve more than 124 million Americans and invest in community outreach efforts – all without having to be told to do so. NAFCU intends to be there with them every step of the way.”
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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