March 11, 2014

NAFCU writes Camp, debunks bankers on tax

March 12, 2014 – NAFCU wrote House Ways and Means Chairman Dave Camp, R-Mich., about credit unions' unique role in their communities and thanked him for recognizing that in his tax reform draft as banking trades continued their attacks on the credit union tax exemption.

The letter, from NAFCU President and CEO Dan Berger, addressed an American Bankers Association missive sent to lawmakers this week. "In the American Bankers Association's own words, ‘A specific tax imposed on a single industry sector is wholly inconsistent with the fundamental purpose of tax reform – to broaden the tax base, lower rates, simplify the code, and reduce economic distortions that impede growth,' " Berger wrote, repeating what ABA said about Camp's proposed new tax on the largest banks even as it continues its attack on the credit union tax exemption.

Berger cited NAFCU's 2014 tax study, which shows that the cumulative benefit credit unions provide to the U.S. economy is more than $17 billion a year. The study also shows eliminating the credit union tax exemption would result in the loss of 150,000 jobs a year, shrinking of the gross domestic product and a net loss of revenue to the federal government.

He also pointed to credit union business lending and how a Small Business Administration's study found those efforts can help offset declines in bank business lending during a recession. Berger also mentioned the taxes credit unions do pay, like payroll, state and local taxes. He added that the credit union industry did not participate in the Troubled Asset Relief Program bailout.