Bankers Play Tax Card in Fight Against MBL
The Independent Community Bankers of America asked Congressional Budget Office and Joint Committee on Taxation leaders to calculate how S. 2231, if passed, would reduce bank tax bills.
In a letter from ICBA President/CEO Camden Fine to CBO Director Douglas Elmendorf and JCT Chief of Staff Thomas Barthold, Fine said increasing the MBL cap from 12.25% to 27.5% of assets is “often misrepresented by some as a ‘cost-free’ means of expanding small business credit.”
Fine referenced 2010 CBO estimates for S. 2919, a similar MBL bill. According to the letter, the CBO estimated the revenue impact at $354 million from 2010 to 2020. However, the calculations were based on the assumption that S. 2919 would have shifted assets from for-profit banks to not-for-profit credit unions.
Supporters of S. 2231 have said banks are failing to meet current business borrowing demand, but banks counter their own surveys say otherwise.
Fine called the tax-exempt status of credit unions “a very serious policy issue in view of our nation’s alarming debt load and unsustainable annual federal budget deficits.” He quoted a Tax Foundation study that placed a $31 billion, 10-year price tag on credit union tax exempt status.
The letter was also sent to House Ways & Means Chairman Dave Camp (R-Mich.), Ranking Member Sander M. Levin (D-Mich.), Senate Finance Committee Chairman Max Baucus (D-Mt.) and Ranking Member Orrin G. Hatch (R-Utah).