Nasty partisan fiscal cliff debate has paired credit unions withconservative groups once again on Capitol Hill, as both factions are lobbying inopposition to S. 3637, banker-supported legislation that wouldextend the Transaction Account Guarantee beyond Dec. 31.

In a letter today to Senate Majority Leader Harry Reid (D-Nev.)and Minority Leader Mitch McConnell (R-Ky.), representatives of 14conservative, libertarian and free market groups voiced theiropposition to a TAG extension.

In addition to the R Street Institute and Competitive EnterpriseInstitute, free-market think tanks that support credit union memberbusiness lending legislation, the letter was signed byrepresentatives of the Blue Ridge Forum, American Commitment, theRepublican National Policy Committee, the 60 PlusAssociation, Tea Party WDC, Less Government, the Center for Freedom& Prosperity, National Center for Public Policy Research,National Taxpayers Union National Tax Limitation Committee,American Enterprise Institute and Human Events.

“It is especially ironic that Congress is contemplating raisingtax rates for those making above $250,000, and TAG furtherencourages the wealthy to sit on their money, rather than invest injob-creating new businesses,” the groups wrote to Reid andMcConnell. “Many wealthy people will choose the security of a 100%guaranteed bank account rather than taking a risk with anentrepreneur.”

The groups added that Congress should look instead to offerregulatory relief to banks, credit unions and other financialinstitutions, rather than “extending this unprecedented,unproductive, and regressive bailout.”

The Senate is scheduled to vote this afternoon on moving S. 3637forward to be debated on the upper chamber's floor.