We need to stay united against banker attacks
Jim Nussle
Chief Executive Officer, AMERICA’S CREDIT UNIONS. Our mission is to advocate for and advance an environment where credit unions thrive.
Tax writers are at work drafting a tax bill this week, just as we see banks make a sudden change in their attacks on credit unions, calling on taxing credit unions of $1 billion or more.
This shift in tactics really gives the bankers’ game away: calls to change the tax status aren’t about lost government revenue or the credit union model but eliminating credit unions as a source of competition. Failing to gain any traction with changing the tax status for all credit unions, they’re now grasping at straws to protect their bottom line.
We must ensure we stay focused on the most important element of this fight: People. It’s people who will suffer the consequences of any new tax on credit unions. Millions of Americans rely on credit unions—we can’t let them down.?
An arbitrary threshold of $1 billion would still be a tax increase on millions of Americans. For example, 74 military-focused credit unions that serve more than 35 million servicemembers, veterans, and military families have more than $1 billion in assets. The banks would raise taxes on all of them for their erroneous claim of “fairness.”
Nothing about a change in credit unions’ tax status would be fair. Banks caused a global financial crisis, not credit unions, and not a penny of taxpayer money has gone to bail out a credit union. While consumers increasingly recognize that credit unions are a partner in their financial future, banks are working overtime on behalf of their shareholders.
Use our Grassroots Action Center to tell your elected officials that the credit union tax status has nothing to do with asset size and everything to do with your member-focused mission. Activate your staff, board, and members using the Member Activation Program. Tell members of Congress that the people they represent did not sign up for a tax increase, no matter how much the banks want to see it.
People outside of the credit union movement recognize the value of the tax status. Personal finance expert Erica Sandberg—who admits she’s not a credit union member—wrote an op-ed in Bad Credit this week, and the headline reads: Removing Credit Unions’ Status Would Be a Mistake.” Sandberg focuses on the need for competition in the market, and ?how anyone that uses financial services should want credit unions to exist, and support preserving the tax status.
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Bipartisan bill introduced to give credit unions business lending flexibility?
Reps. Vicente Gonzalez, D-Texas, and Brian Fitzpatrick, R-Pa., introduced bipartisan legislation this week to provide credit unions greater business lending flexibility. The Increasing Credit Union Lending for Business Growth Act (H.R. 1791) would exempt member business loans up to $100,000 from the member business lending cap. Policymakers have told us—and we’ve also testified—that credit unions are well-positioned to get additional capital to small businesses, and legislation like this is how we accomplish that goal.
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Senate Banking Committee advances stablecoin, reputation risk bills?
The Senate Banking Committee advanced two pieces of legislation we support this week: one to regulate stablecoins, another to remove reputational risk from financial institution supervision. The stablecoin bill recognizes credit union service organizations as appropriate entities to issue stablecoins, which we strongly support. We also successfully advocating against an amendment that would have placed a $5 cap on overdraft fees.?
Relentless advocacy to protect, advance, and empower credit unions:?
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Latest podcast episode dives deeper into record-breaking GAC?
Take “A CU Seat at the Table” with the latest podcast episode, featuring interviews with two Governmental Affairs Conference keynoters, Carla Harris and Mike “Coach K” Krzyzewski. Our Chief Membership and Engagement Officer Anthony Demangone sat down with Carla and Coach K to talk about their trailblazing careers, and how their lessons on leadership, innovation, and a positive culture can enhance credit unions’ sense of people helping people.