The National Taxpayers Union along with other conservative public policy groups on April 24 wrote the Senate Finance Committee Chairman Orrin Hatch (R - UT) and the committee urging them to examine the tax exemption of large credit unions to ensure that these credit unions are adhering to the original intent of the statute.
The group expressed concerns that some of these large credit unions have strayed from their intended purpose.
The letter noted that many credit unions remain focused on their core mission, but some large credit unions operate like banks instead of credit unions.
The group wrote: "A tax exemption gives these select few credit unions a distinct edge over taxpaying banks and creates an uneven playing field, particularly over smaller community banks, which compete for similar customers."
The organizations stated that as credit unions evolve Congress should regularly review the governing tax and regulatory provisions to ensure that the tax exemption "is aligned with the intent of Congress and the interest of sound economic principles."
Read the letter.
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They’re correct.
ReplyDeleteThe large credit unions are banks that don’t pay taxes.
Been that way for years.
But congress is corrupted.
Hatch would rather have the IRS “look” at credit unions and see what the CEOs are paid.
That insures more years of banks and credit unions giving bribe money to icba, CUNA, ncafcu, aba who then grease politicians.
The lobbyists and politicians win, banks and credit unions lose. Lose money, lose regulatory relief. And while politicians allow FINTECH into consumer lending with no regulations.
banks and credit unions should quit wasting money on lobbyists.
And big CUs should be taxed.
"Strayed from the mission."
ReplyDeleteAccept deposits. Make loans. Give member-owners access to their funds in today's marketplace. I don't see where that has changed. CUs have been making business loans since Day 1. Our economy and legal environments have developed since WWII making CUs adjust to the changing Business ownership models and funding demands.
I am sorry but the one branch credit union no longer exists as does the one branch (and one state) bank. CUs have had checking accounts for 40 years (live with it)!
All good and true, but should pay taxes.
DeleteNo one is saying don’t accept deposits or make loans.
What we are saying is you’re a bank that doesn’t pay taxes. Those over $500M or $1B should be taxed.
Modest means?
Bull sh—.
Banks provide more loans to modest means than credit unions do.