Taxing credit unions would take them back four decades, according to Dollar Associates Principal Dennis Dollar, former chairman of NCUA. "If credit unions were taxed, I think it would be the end of credit unions as we know them," he stated. The larger ones, he predicted would convert to banks and bring into question the safety and soundness of the small and medium-size credit unions that were left; the larger credit unions provide resources, education, and other less tangible benefits to the smaller ones, he pointed out. In fact, Dollar said, the only real incentive to remain a credit union would be because of the institution's ties to its sponsor company. "Credit unions would be like they were 40 years ago. They'd be company benefit plans," he commented. Taxation would be particularly punitive to growing credit unions because it would erode their capital that allows them to grow, he added. If credit unions cannot grow, they cannot compete, which is the bankers' entire goal, Dollar said. The former NCUA chairman described himself as a "strong believer" in documenting service but he feels it should be voluntary. "Although the tax-exemption is based on our structure.this is a political battle," he observed. But mandatory data collection "doesn't take adding six more pages to the Call Report," Dollar added. It just takes a few pointed questions, like how many loans did the credit union make to people with income below $30,000? and how many mortgages did the credit union make for first-time buyers? "NCUA has incredible technical abilities to be able to sift that data," he said. And the added bonus is "by virtue of asking, you focus credit unions on it."