The Independent Community Bankers of America aren't taking aholiday break from attempts to repeal the credit union taxexemption, sending an email to all Capitol Hill offices on Mondaypushing the agenda.

The message, sent from ICBA Administrative Assistant AlisonSampson with the subject line, “Credit Union Subsidy CostsTaxpayers Billions,” cited H.R. 6474, a bill that mistakenly included credit unions with other tax reforms. Thebill helped “reignite the controversy over the credit union taxsubsidy,” the ICBA said.

The email also sourced a Tax Foundation estimate that valuedcredit union tax exemption at more than $30 billion over 10years.

“Lending by tax-exempt credit unions displaces lending bytaxpaying banks, thereby reducing tax revenue to thegovernment and increasing the deficit,” the ICBA said. “At atime when the federal budget deficit is over $16 trillion, wecannot allow the American taxpayer to subsidize credit unions.”

NAFCU Vice President of Legislative Affairs Brad Thaler saidhe's not surprised by the Thanksgiving week pitch from the ICBA,saying lame duck fiscal cliff negotiations between the White Houseand Congress could “lock in parameters for tax reform” in 2013.

Thaler said his team responded to the email, contacting membersof Congress and sharing with them NAFCU's own tax exemption studythat concluded tax revenue would decrease, not increase, if creditunions were taxed.

Thaler said he thinks lawmakers on Capitol Hill have found theNAFCU study credible. He also said credit union lobbyists are alsoreminding legislators that banks accepted billions of dollars inTARP funds – which many community banks have not been able to repay– and that nearly one-third of banks have tax-exempt Subchapter Scharters.

CUNA's Executive Vice President of Government Affairs JohnMagill said the ICBA is pressing tax exemption because they'relosing the battle on member business lending legislation.

“If they really thought they were winning the MBL argument onthe Hill, they wouldn't be talking about tax exemption,” Magillsaid, adding, “when they've lost the policy argument they changethe subject.”

Magill agreed with Thaler's position that fiscal cliff issuesare spurring tax reform talk, and said of the ICBA, “Anytime theysee an opening they'll try to throw some mud at us.”

Magill said CUNA did not respond to the email, because the tradeis busy preparing for a Hike the Hill event pushing member business lending thefollowing week.

“We'll be responding when our participants fly in next week. Andbelieve me, they'll hear a very loud and clear response,” hesaid.