Fred Becker, president and CEO of the National Association of Federal Credit Unions, urged credit unions to continue to push for the preservation of the credit union tax exemption.
The organization has said in the past that eliminating the credit union tax exemption would likely force credit unions to increase profits, which would cause customer service to suffer; have a negative effect on savings and borrowing rates, leading to an increase in fees; put further constraints on capital; and cause credit unions to become more like banks.
A NAFCU study released in September showed that eliminating the tax exemption would cost the federal government $15 billion in lost tax revenue over the next 10 years and would result in the loss of 1.5 million jobs.
Becker pointed to a meeting with the House Ways and Means Committee in April, saying the issue of the credit union tax exemption is likely to be “kicked down the road.” He also said other issues, such as the debt ceiling and tax reform, are likely to distract lawmakers.
Additionally, Becker urged credit union representatives to speak with their local legislators and to ensure lawmakers know the importance of the tax exemptions to both credit unions and the larger economy.