Feb. 26, 2013 – NAFCU’s Brad Thaler quickly contacted lawmakers Monday to debunk the misinformation being spread anew via print and radio advertisements and in letters to House and Senate leaders about credit unions and their exemption from federal corporate income tax.
The American Bankers Association has launched a new round of information dissemination aimed at convincing consumers and lawmakers that the credit union exemption is costly to consumers, the federal government and economy at large. Thaler, NAFCU's vice president of legislative affairs, notes this is the exact opposite of what the credit union exemption is about, and what it accomplishes.
"Despite what the bankers want you to believe, credit unions do pay many taxes (such as property taxes, federal payroll taxes, etc.),” Thaler wrote. “The bankers also ignore the fact that nearly one-third of banks are Subchapter S corporations that don’t pay federal taxes themselves – a tax break worth billions to the bankers."
Thaler also notes findings from NAFCU’s landmark study of the credit union exemption, which shows the total benefit of the credit union exemption to U.S. consumers exceeds $10 billion a year.