Berger on CNBC: CUs don’t want to be banks
NAFCU President and CEO B. Dan Berger
Sept. 12, 2013 – NAFCU President and CEO B. Dan Berger was quoted in a CNBC story Tuesday about the fight to preserve the credit union tax exemption and said credit unions are defined by the not-for-profit status that led to the tax exemption.
“Our not-for-profit status shows that for us, it’s not about stockholders, but about our members,” Berger said. “If we lost the exemption, we’d be just like the banks – we don’t want to be like them.”
The article also cited the NAFCU-commissioned independent study on the benefits of the tax exemption, which showed that removing it would cost credit union members and bank customers $10 billion a year because rates would be less competitive without the cooperatives. The study also showed the federal government would lose $1.5 billion annually in lost tax revenue.
In the story, Berger also pointed out that many banks avoid the corporate income tax through their status as S Chapter corporations. CNBC also quoted a professor of political science and business administration, who said “credit unions have the upper hand politically” on the tax issue. “There are so many credit unions in so many congressional districts, it would be hard for Congress to repeal it. They can mobilize and are well connected to their lawmakers,” he said.
NAFCU economic study of the CU tax exemption