WASHINGTON-After a Letter to the Editor appeared in the American Banker last month advocating the taxation of credit unions, the leaders of two national credit union trade associations responded with the business end of their pens. “Far more than the tax exemption, it’s their not-for-profit structure and volunteer-based governance that enable credit unions to offer lower fees, more attractive rates, and more personalized service than their for-profit competitors,” CUNA President and CEO Dan Mica wrote. He also said that CUNA studies demonstrated that credit unions return $5 in lower costs to their members for every dollar of tax savings. Mica added that he would wager that little to none of banks’ tax savings make it back to their accountholders. While the banker letter writer argued that `fiscal uncertainty’ and `national emergency’ call for the taxation of credit unions, NAFCU President and CEO Fred Becker argued the complete opposite. “I would contend that the very worst time to press for a major structural change in credit unions, like taxing them, is precisely during times of great stress on our nation,” Becker wrote. “When you add all the recent financial scandals into the mix, credit unions’ rock-solid safety-and-soundness record, along with unparalleled customer service and lower fees, are exactly what the nation needs during these times.” Mica realized his wish for the New Year is unlikely to come true, but he wrote it anyway. “Maybe it’s too much to ask,” he wrote, “but perhaps in the new year the banking industry can focus on what’s best for consumers rather than using hollow, timeworn arguments in the hope of thwarting competition and consumer choice.”

Complete your profile to continue reading and get FREE access to CUTimes.com, part of your ALM digital membership.

Your access to unlimited CUTimes.com content isn’t changing.
Once you are an ALM digital member, you’ll receive:

  • Critical CUTimes.com information including comprehensive product and service provider listings via the Marketplace Directory, CU Careers, resources from industry leaders, webcasts, and breaking news, analysis and more with our informative Newsletters.
  • Exclusive discounts on ALM and CU Times events.
  • Access to other award-winning ALM websites including Law.com and GlobeSt.com.

Already have an account?


Credit Union Times

Join Credit Union Times

Don’t miss crucial strategic and tactical information necessary to run your institution and better serve your members. Join Credit Union Times now!

  • Free unlimited access to Credit Union Times' trusted and independent team of experts for extensive industry news, conference coverage, people features, statistical analysis, and regulation and technology updates.
  • Exclusive discounts on ALM and Credit Union Times events.
  • Access to other award-winning ALM websites including TreasuryandRisk.com and Law.com.

Already have an account? Sign In Now
Join Credit Union Times

Copyright © 2023 ALM Global, LLC. All Rights Reserved.