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NAFCU to house ways and means committee: Credit unions’ tax-exempt status benefits the nation’s economy

WASHINGTON, DC (May 17, 2017) — National Association of Federally-Insured Credit Unions (NAFCU) Executive Vice President of Government Affairs and General Counsel Carrie Hunt emphasized the value of credit unions’ federally tax-exempt status to the nation’s economy in a letter today to the House Ways and Means Committee, which is set to hold a hearing Thursday, “How Tax Reform Will Grow Our Economy and Create Jobs.”

“As the Committee considers tax reform, NAFCU wants to remind you of the economic benefit of the credit union tax exemption to the greater economy,” Hunt wrote. “Credit unions are a vital part of the financial services industry and provide their nearly 110 million members financial opportunities they may not otherwise have access to. The cumulative benefit credit unions provide the greater economy totals $16 billion a year, according to an independent study released by NAFCU in 2017.”

Hunt noted that elimination the exemption would result in the loss of 90,000 jobs a year, a shrinking of the GDP and a net loss of revenue to the federal government. “Simply put, the credit union tax exemption helps grow the greater economy and create jobs,” she said.  “During the financial crisis, credit unions continued to lend to consumers and small businesses that were left behind by other lenders. Credit unions are pleased to play a key role in delivering growth and financial opportunity for all Americans.”

Below please find the full text of the letter:

May 17, 2017

The Honorable Kevin Brady                                     The Honorable Richard Neal

Chairman                                                                  Ranking Member

Committee on Ways and Means                               Committee on Ways and Means

U.S. House of Representatives                                 U.S. House of Representatives

Washington, D.C. 20515                                           Washington, D.C. 20515

 

Re: Tomorrow’s Hearing: How Tax Reform Will Grow Our Economy and Create Jobs

Dear Chairman Brady and Ranking Member Neal:

On behalf of the National Association of Federally-Insured Credit Unions (NAFCU), the only national trade association that exclusively represents the federal interests of federally-insured credit unions, I write regarding the hearing tomorrow entitled “How Tax Reform Will Grow Our Economy and Create Jobs.”

As the Committee considers tax reform, NAFCU wants to remind you of the economic benefit of the credit union tax exemption to the greater economy.  Credit unions are a vital part of the financial services industry and provide their nearly 110 million members financial opportunities they may not otherwise have access to. The cumulative benefit credit unions provide the greater economy totals $16 billion a year according to an independent study released by NAFCU in 2017.  You can read the study at: www.nafcu.org/cutaxexemption.

The study also shows that altering the tax status of credit unions would have a devastating impact not only on credit union members across the country, but also on consumers and small businesses in general. Eliminating the credit union tax exemption would result in the loss of 90,000 jobs a year, a shrinking of the GDP, and a net loss of revenue to the federal government.

Simply put, the credit union tax exemption helps grow the greater economy and create jobs.  During the financial crisis, credit unions continued to lend to consumers and small businesses that were left behind by other lenders. Credit unions are pleased to play a key role in delivering growth and financial opportunity for all Americans.

It is with these facts in mind that we ask you to continue to recognize credit unions as an important cog in our nation’s economic well-being and 1 or need any assistance, please don’t hesitate to contact me or NAFCU’s Vice President of Legislative Affairs Brad Thaler at bthaler@nafcu.org or (703) 842-2204.

Sincerely,

Carrie R. Hunt

Executive Vice President of Government Affairs and General Counsel

cc:        Members of the House Ways and Means Committee


About NAFCU

The National Association of Federally-Insured Credit Unions is the only national trade association focusing exclusively on federal issues affecting the nation’s federally-insured credit unions. NAFCU membership is direct and provides credit unions with the best in federal advocacy, education and compliance assistance. For more information on NAFCU, go to www.nafcu.org or @NAFCU on Twitter.

Contacts

Molly Safreed, msafreed@nafcu.org (NAFCU)

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