Pevo rebuts more anti-CU bank rhetoric
Sept. 11, 2013 – NAFCU Director of Legislative Affairs Jillian Pevo on Tuesday sent a swift rebuttal Tuesday to a new round of banking industry email to lawmakers attacking credit unions’ federal corporate tax exemption.
Pevo was responding to a wave of email initiated by the Independent Community Bankers of America; it was the second round of such attacks in two days, the first originating Monday by the American Bankers Association.
The banking trades are trying distort the truth about credit unions through misinformation about their mission, operations and services. In that effort, they are lodging erroneous claims about credit unions’ structure and tax status, their work lending to member small businesses and growth in membership that has broken records over the past several quarters – largely in response to bank fee hikes and other practices.
Writing Congress, Pevo emphasized the findings of NAFCU’s economic study of the credit union federal tax exemption and questioned why bankers hold to a charter they claim is less beneficial.
Pevo highlighted the following facts about the credit union exemption:
- the presence of credit unions generates more than $10 billion in economic benefits each year – benefits that are enjoyed not only by credit union members but also bank customer;
- removing the credit union exemption would lead to loss of 150,000 jobs a year, a shrinking of the GDP and a net loss of revenue to the federal government.
Pevo said the federal corporate tax exemption “is an issue of survival for your credit unions” and a check against exorbitant fees from other financial institutions. She added, “If credit unions, as banks claim, have such an extraordinary advantage, why aren't banks lining up to convert to credit unions?”
Reps. Maxine Waters, D-Calif., Tim Scott, R-S.C., and Peter King, R-N.Y., told credit unions at NAFCU’s Congressional Caucus Tuesday that they will work to ensure credit unions’ tax exemption is preserved as lawmakers address broad tax reform.
CU tax exemption
NAFCU Congressional Caucus