ICBA reiterated its call for policymakers to eliminate the federal tax exemption for credit unions with more than $1 billion in assets following the fourth announced credit union acquisition of a tax-paying community bank this year.
Details: In a national press release, ICBA President and CEO Rebeca Romero Rainey noted that after last year’s record number of credit union acquisitions of community banks, the public and policymakers are increasingly questioning the fairness of subsidizing rapid consolidation in the community banking sector.
Statement: “Growth-obsessed credit unions now rival banks in size, holding trillions in assets while maintaining a nonprofit status that no longer reflects their operations,” Romero Rainey said. “Eliminating the federal tax exemption for credit unions over $1 billion in assets will help protect choice for consumers and small businesses.”
Momentum: Consumers increasingly support reforms to credit union policies, with recent ICBA polling conducted by Morning Consult finding that 62% support a congressional investigation of the credit union industry’s tax and regulatory exemptions.
ICBA Advocacy: ICBA’s “Repair, Reform, and Thrive” plan and open letter to the 119th Congress urge lawmakers to use the current debate over tax reform to address credit unions’ tax and regulatory advantages.
