On Feb. 11, 2015, CU Times posted a story, "Shelby Waffles on Credit Union Tax Exemption," as breaking news.
Anytime the Senate Banking Chairman is asked about the credit union tax exemption, it is newsworthy. I understand that.
However, the tone of the article suggested the Sen. Richard Shelby (R-Ala.) said something new or counter to his previously stated position on the issue. Sen. Shelby, who does not sit on the Senate Finance committee, clearly stated that he believes in starting over on the tax code but does not believe that will happen. If you read his quotes, he did not "waffle" on the credit union tax exemption.
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The reality of the story is that Sen. Shelby's interaction with the CU Times came after a hearing on regulatory reform that would benefit credit unions. The Senate Banking committee has held a series of hearings this week on regulatory reform, in which the NCUA and CUNA were both asked to testify. Sen. Shelby was one of a handful of lawmakers who sent an individual letter of concern to the NCUA last year regarding the risk-based capital proposal.
The CU Times article attempted to paint Sen. Shelby as an adversary to the credit union industry, his actions, more so than his words, have proven otherwise.
As the president and CEO of the League of Southeastern Credit Unions & Affiliates, it is my job to lead lobbying efforts on behalf of credit unions in Alabama and Florida. Advocacy is a very tough business. Credit union issues are complex and not black and white. Asking Sen. Shelby, in that setting, if he supported the credit union tax exemption and expecting a quick yes or no answer is unrealistic and not consistent with the way Sen. Shelby approaches issues – which is usually in a thoughtful manner.
The tax code is extremely complex. Reforming it will be a monumental undertaking that will take bipartisan cooperation and support. He answered the CU Times question with a genuine answer that falls in line with his positon. He has never said he would like to see the credit union tax exemption repealed. By inferring that he "waffled" on the tax exemption is to say he changed his position.
I understand it is the CU Times' job to report on newsworthy items, but I disagree when the story is sensationalized and taken out of context.
Next time the CU Times has a story with a lawmaker that they feel is worthy of breaking news, I ask that they get in touch with CUNA or the lawmaker's state league to get some perspective before pushing out a one-sided story.
Patrick La Pine
President/CEO
Southeastern Credit Unions & Affiliates
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