Acquisition ignites calls to end tax exemption for large credit unions

ICBA reiterated its call for policymakers to eliminate the federal tax exemption for credit unions with more than $1 billion in assets following the fourth announced credit union acquisition of a tax-paying community bank this year.

Details: In a national press release, ICBA President and CEO Rebeca Romero Rainey cited growing scrutiny of subsidized industry consolidation.

“Growth-obsessed credit unions now rival banks in size, holding trillions in assets while maintaining a nonprofit status that no longer reflects their operations,” Romero Rainey said. “Eliminating the federal tax exemption for credit unions over $1 billion in assets will help protect choice for consumers and small businesses.”

Momentum: Recent ICBA polling conducted by Morning Consult found that 62% of consumers support a congressional investigation of the credit union industry’s tax and regulatory exemptions.

ICBA Advocacy: ICBA’s “Repair, Reform, and Thrive” plan and open letter to the 119th Congress urge lawmakers to use the current debate over tax reform to address credit unions’ tax and regulatory advantages.