Nasty partisan fiscal cliff debate has paired credit unions with conservative groups once again on Capitol Hill, as both factions are lobbying in opposition to S. 3637, banker-supported legislation that would extend 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 14 conservative, libertarian and free market groups voiced their opposition to a TAG extension.
In addition to the R Street Institute and Competitive Enterprise Institute, free-market think tanks that support credit union member business lending legislation, the letter was signed by representatives of the Blue Ridge Forum, American Commitment, the Republican National Policy Committee, the 60 Plus Association, 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 raising tax rates for those making above $250,000, and TAG further encourages the wealthy to sit on their money, rather than invest in job-creating new businesses," the groups wrote to Reid and McConnell. "Many wealthy people will choose the security of a 100% guaranteed bank account rather than taking a risk with an entrepreneur."
The groups added that Congress should look instead to offer regulatory relief to banks, credit unions and other financial institutions, rather than "extending this unprecedented, unproductive, and regressive bailout."
The Senate is scheduled to vote this afternoon on moving S. 3637 forward to be debated on the upper chamber’s floor.