Newsroom
May 26, 2015
Berger in WSJ, rebuts bankers' tax attack
NAFCU President and CEO Dan Berger rebuts a banking trade executive's recent rant against credit unions' federal tax exemption in a letter to the editor today in The Wall Street Journal.
Responding to an opinion piece from Florida Bankers Association President and CEO Alex Sanchez, Berger points out that since passage of the 1934 Federal Credit Union Act, the things that set credit unions apart from for-profit financial institutions have not changed: they are not-for-profit cooperatives, serve defined fields of membership and cannot issue capital stock. And any earnings go back to the members.
"Credit unions have grown to more than $1 trillion in assets – and attracted more than 100 million consumer-members – not because of any tax advantage, but because they deliver services their members want at low, reasonable cost," Berger points out. "Moreover, they act as a check on other institutions' rates and fees and help the economy grow."
Adding that credit unions do pay taxes – including payroll taxes and many state and local taxes – Berger notes also that nearly one-third of banks enjoy the federal government's "Subchapter S" status and pay no federal corporate income tax.
Responding to an opinion piece from Florida Bankers Association President and CEO Alex Sanchez, Berger points out that since passage of the 1934 Federal Credit Union Act, the things that set credit unions apart from for-profit financial institutions have not changed: they are not-for-profit cooperatives, serve defined fields of membership and cannot issue capital stock. And any earnings go back to the members.
"Credit unions have grown to more than $1 trillion in assets – and attracted more than 100 million consumer-members – not because of any tax advantage, but because they deliver services their members want at low, reasonable cost," Berger points out. "Moreover, they act as a check on other institutions' rates and fees and help the economy grow."
Adding that credit unions do pay taxes – including payroll taxes and many state and local taxes – Berger notes also that nearly one-third of banks enjoy the federal government's "Subchapter S" status and pay no federal corporate income tax.
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