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July 17, 2017
Hunt to Senate panel: CU tax exemption benefits members, economy
NAFCU's Carrie Hunt noted the importance of credit unions to their communities and members in a letter to leaders of the Senate Finance Committee Monday ahead of a hearing on tax reform today. Hunt detailed the cumulative benefit credit unions' federal tax exemption provides to the U.S. economy.
"As member-owned cooperatives providing local communities with basic financial service products, credit unions are proud of their track record in serving Main Street throughout the financial crisis," wrote Hunt, NAFCU's executive vice president of government affairs and general counsel, to Senate Finance Committee Chairman Orrin Hatch, R-Utah, and Ranking Member Ron Wyden, D-Ore. "All told, the cumulative benefit credit unions provide the greater economy totals over $16 billion a year according to an independent study released by NAFCU earlier this year."
She enclosed a copy of the study with her letter, which was also sent to all members of the committee.
"Without credit unions, which effectively provide checks and balances in the marketplace, for-profit banks would likely increase rates and fees on consumers," she added.
Last month, Hatch invited interested parties to submit tax reform ideas and comments to the committee; NAFCU sent its response last week. Included in both letters, Hunt explained that despite receiving a federal income tax exemption, credit unions still do pay taxes, including property, federal payroll and other local taxes.
"Credit unions help facilitate economic growth through lower loan rates, higher interest on deposits, and lower fees," she concluded. "Any effort to strip credit unions of their federal tax exemption will have a drastic and immediate negative impact on credit unions and their 110 million members."
"As member-owned cooperatives providing local communities with basic financial service products, credit unions are proud of their track record in serving Main Street throughout the financial crisis," wrote Hunt, NAFCU's executive vice president of government affairs and general counsel, to Senate Finance Committee Chairman Orrin Hatch, R-Utah, and Ranking Member Ron Wyden, D-Ore. "All told, the cumulative benefit credit unions provide the greater economy totals over $16 billion a year according to an independent study released by NAFCU earlier this year."
She enclosed a copy of the study with her letter, which was also sent to all members of the committee.
"Without credit unions, which effectively provide checks and balances in the marketplace, for-profit banks would likely increase rates and fees on consumers," she added.
Last month, Hatch invited interested parties to submit tax reform ideas and comments to the committee; NAFCU sent its response last week. Included in both letters, Hunt explained that despite receiving a federal income tax exemption, credit unions still do pay taxes, including property, federal payroll and other local taxes.
"Credit unions help facilitate economic growth through lower loan rates, higher interest on deposits, and lower fees," she concluded. "Any effort to strip credit unions of their federal tax exemption will have a drastic and immediate negative impact on credit unions and their 110 million members."
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