NAFCU President and CEO Dan Berger, in an op-ed published yesterday in CUToday, defended the merit of leaving the credit union tax exemption intact in tax reform efforts because of its positive economic impacts.
Berger was rebutting a letter sent by the Independent Community Bankers of America (ICBA) to leaders of the House Ways and Means Committee, which argued that while the association generally supports the tax reform bill, it disagrees with maintaining credit unions' tax-exempt status.
Berger, in his op-ed, called the ICBA's argument "hypocritical based on the fact that roughly one-third of banks are Subchapter S corporations that pay no corporate income tax."
"Therefore, it is surprising that ICBA would advocate for getting rid of the credit union tax exemption – which has a proven benefit to the U.S. economy of $16 billion per year," Berger continued.
Additionally, Berger noted that credit unions are not-for-profit institutions and "give any money made right back into the hands of members – through reduced fees and higher savings rates."
Berger also highlighted an independent study released earlier this year that revealed multiple positive impacts the credit union industry and its tax exemption have on the U.S. economy.
To read Berger's full op-ed, click here.