Apparently credit union lobbyists believe the tax exemption is essential for survival.
Politico's Morning Money on September 5 reported that NAFCU's Vice President of Legislative Affairs Brad Thaler in an e-mail to members of Congress wrote: "Simply put, the tax exemption is an issue of survival for credit unions."
That is a pretty sad commentary from credit union lobbyists that the credit union industry cannot be competitive without its government subsidy.
I wonder how many credit union CEOs share this attitude.
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Without an alternative capital source and limited powers to serve, yes the tax exemption is important to credit unions.
ReplyDeleteFull taxation must equal full powers including the ability to give directors paid perks - salary and discounted loans - like banks.
It IS essential, to impotent lobbyist survival.
ReplyDeleteCredit unions have already survived the 5 year dress rehearsal for taxation, the NCUA assessments.
You would see a steady stream of conversions to Mutual Savings Banks. Hence, the end of the Credit Union movement
ReplyDeleteKeith,
ReplyDeleteWhen Congress granted the income tax exemption to the credit union industry, they also threw in severe limitations. That's why the tax status of credit unions is so vital.
You can't really talk about one without the other.
Here's a thought, Keith. Why can't we get along and talk about the real threat...ICBA. (Just kidding.)
I think the real threat is regulatory burden. Imagine if we focused together on that. Oh well...per chance to dream.
Your credit union buddy,
Anthony Demangone, NAFCU
Anthony: Maybe if banks and credit unions worked together, consumers would benefit. Like getting rid of the stupid 6 transfers per month - Reg D. Less use of courtesy pay/overdraft. More money in their pockets.
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