Spring Fever and Bad Policy Engulf the Capital
Spring fever is in the air. Or hay fever. Some kind of fever has policy makers in Washington not thinking very clearly.
Though not specifically discussing the credit union tax exemption, President Barack Obama called for a reduction in “tax expenditures” so that there will be enough to lower tax rates and the deficit. By tax expenditure he means your credit unions’ tax-exempt status, among others. Yes, the government is now going after not-for-profits to prop up its ludicrous spending. The president framed it as $4 trillion in savings over 12 years.
Credit unions not only create jobs with their own hires, but they also make it possible for small businesses to start or hire more employees. Banks would never touch these loans, as they’ve already demonstrated. Better employment numbers is what this administration needs if it wants to stay in power.
Credit unions also serve as a regulator on bank rates and fees. CUNA has estimated that credit unions save American consumers (many of them voters) over $6 billion a year. When credit unions save their members that kind of dough, they feel wealthier with the money in their pockets and can spend, which is needed to help boost the economy. If instead the government takes that money in the form of taxes, it’s essentially gone in the consumer’s mind. Consumer spending accounts for the bulk of the U.S. economic engine.