Newsroom
April 18, 2016
Berger hits bankers back on CU tax status
NAFCU President and CEO Dan Berger reiterated the benefits credit unions provide to the American economy Monday in a response aimed at debunking the erroneous assertions made by the American Bankers Association to the House Ways and Means and Senate Finance Committees.
Writing to House Ways and Means Chairman Kevin Brady, R-Texas, committee members and the Senate Finance Committee, Berger pointed to ABA's "arrogance" when listing the fines and settlements big banks have paid as a result of the financial crisis, which often can be written off as tax deductions for the banks.
"Analysis of these settlements has put the tax break value of these fines at nearly $17 billion a year over the last few years – over 10 times the 2015 tax expenditure estimate for credit unions ($1.69 billion) in the President's annual budget request," Berger wrote.
Berger also noted the economic benefit that credit unions provide to the American economy – more than $17 billion a year, according to an independent study released by NAFCU in 2014. The study also found that eliminating the credit union tax exemption would result in a loss of 150,000 jobs a year and a shrinking of the gross domestic product and net loss of revenue to the federal government.
Berger also pointed out that nearly one-third of banks are Subchapter S corporations and pay no corporate income tax. "If credit unions have such an extraordinary advantage, why aren't banks lining up to convert to credit unions?" he asked.
Writing to House Ways and Means Chairman Kevin Brady, R-Texas, committee members and the Senate Finance Committee, Berger pointed to ABA's "arrogance" when listing the fines and settlements big banks have paid as a result of the financial crisis, which often can be written off as tax deductions for the banks.
"Analysis of these settlements has put the tax break value of these fines at nearly $17 billion a year over the last few years – over 10 times the 2015 tax expenditure estimate for credit unions ($1.69 billion) in the President's annual budget request," Berger wrote.
Berger also noted the economic benefit that credit unions provide to the American economy – more than $17 billion a year, according to an independent study released by NAFCU in 2014. The study also found that eliminating the credit union tax exemption would result in a loss of 150,000 jobs a year and a shrinking of the gross domestic product and net loss of revenue to the federal government.
Berger also pointed out that nearly one-third of banks are Subchapter S corporations and pay no corporate income tax. "If credit unions have such an extraordinary advantage, why aren't banks lining up to convert to credit unions?" he asked.
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