Monday, February 25, 2013

CU Tax Exemption -- Indefensible and Outdated

Check out the latest ads calling out credit unions on their outdated and indefensible tax exemption.

View the print ad. Listen to the radio ad.


  1. Same tired argument from the same tired voices. Einstein defined insanity as doing the same thing over and over and expecting a different result. Perhaps instead of insanity it's the arrogance or ignorance of the ABA in keeping with the same tired message. Community Banks have far more to fear from Mega-Banks than from credit unions.

    1. Community banks don't fear credit unions, they object to the inequity of the tax exemption.
      The ad is silly however.
      ABA should use more intelligence in pursuit of closing the tax gap.
      The big, bank-like credit unions should pay tax.
      The little ones are still credit unions.
      The bank vs cu "fight" is as tiresome and ineffectual for both sides as congress is with everything.
      As for definition of insanity...NOTHING is more INSANE in American commerce than our (Cuna aka cu not accountable) MBL quarterly push.

  2. There is no inequity when it is taxpayers that own the institution. I could see the merit of ABA's argument if wealth were concentrated with a relatively small number of owners, but that is simply not the case. The tax code set up far, far and away benefits the richest in this country and the lower income folks basically get a pass. I'm not getting down on the whole bogus social justice thing but truly high earners have completely legitmate tax loopholes that Joe the plumber does not. The middle class is getting disproportionately nailed from all sides. If middle class folks get a lower rate on their car loan or higher dividend rate on their savings and thus can contribute more to the economy by virtue of a few more dollars of disposable income it will eclipse any purported tax revenue benefit($2 billion? - a very suspect number btw)from taxing credit unions.

  3. That would be great if it eere only true.
    You are most likely NOT employed at a credit union of any size.
    If you were what you would know is that most credit unions dont "serve the underserved".
    In fact thats a comical notion.
    Would bet many large ones have no focus on it.

    1. To the contrary - I'm a President/CEO of a mid-sized low income charter. I would suggest that if your credit union is not walking the talk then stand up and do something about it.

  4. If it's such an advantage, why haven't ANY banks ever converted to a credit union?

  5. Thrivent converted in 2012. ESL did the same in the mid 1990s.

    In both cases, the institutions were mutuals.



The content is provided for educational purposes only, with the understanding that neither the authors, contributors, nor the publishers of this site are engaged in rendering legal, accounting or other expert or professional services. If legal or other expert assistance is required, the services of a competent professional should be sought.

Comments appearing in response to articles appearing on this site do not necessarily reflect the views of the ABA. ABA makes no representations regarding the truth or accuracy of commentary or opinions that may be posted in response to the articles that appear on this website.

The inclusion herein of any link to a website, either in the text of an article or in a comment, does not denote any approval, sponsorship, or endorsement by the ABA, and ABA is not responsible for the content or opinions expressed on those linked websites or related commentary. This content is not licensed to third parties sites and is not affiliated with any third party site. Any reference to the author or this content on any third party site on the Internet is not authorized by the ABA.

It is the policy of the American Bankers Association to comply fully with all antitrust laws. Certain discussions should be considered off-limits, including those that contain competitively sensitive data such as price and cost information, or statements that could be construed as reflecting an attempt or desire to control or influence a particular market or markets. Future pricing or other prospective competitive information should never be shared.