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NAFCU defends CU tax exemption amid ongoing attacks
Responding to the ongoing attacks from bankers and their allies, including a newly released paper that calls for the repeal of the credit union tax exemption, NAFCU Vice President of Legislative Affairs Brad Thaler touted the economic benefits of the tax exemption in a message to lawmakers on Capitol Hill yesterday.
"The fact is that the total estimated benefit credit unions provide the greater economy totals over $16 billion a year," wrote Thaler. "Eliminating the credit union tax exemption would result in the loss of 900,000 jobs over the next decade, a shrinking of the GDP, and a net loss of revenue to the Federal government."
Thaler also called on lawmakers to be leery of banker-supported attacks on credit unions as they distract from banks' own wrongdoing, egregious behavior, and the $243 billion in fines they've racked up since the financial crisis. He also noted the fact that banks saw a hefty tax break from the Tax Cuts and Jobs Act.
Instead of fixating on hindering credit union competition, Thaler encouraged bankers and their allies to "focus their resources on issues that can help the entire financial services community, such as consumer protection, regulatory relief and creating a national data security standard for those who do not currently have one, including retailers and others who handle consumer financial data."
As credit unions’ Washington Watchdog, NAFCU has long touted the benefits of the credit union tax exemption, and the association will continue to do so amid baseless attacks by bankers and their allies.