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Since the 2008 financial crisis, banks have been fined more than $243 billion for consumer abuses and risky behaviors that contributed to the crisis. Despite these fines, banks continue to see soaring profits and billions of dollars in tax handouts – $18 billion last year alone – and yet their lobbyists continue to propagate misleading claims about the credit union industry and its tax-exempt status in an attempt to stifle competition. As the industry's Washington Watchdog, NAFCU is setting the record straight by touting the real benefits of credit unions to Congress and the public.

"Altering the tax status of credit unions would have a devastating impact not only on credit union members across the country, but on consumers and the U.S. economy," said NAFCU President and CEO Dan Berger in response. "Credit unions drive some $16 billion in economic growth each year. Eliminate their tax exemption and you lose $38 billion in tax revenue, $142 billion in GDP and 900,000 jobs over the next 10 years.

"When talking about tax fairness, people should be concerned about the billions in tax cut benefits banks enjoyed in 2019, which only boosted shareholder payouts and made them richer in the same decade they were bailed out from the financial crisis," Berger continued. "Not to mention, about one-third of U.S. banks enjoy Subchapter S status so they can distribute untaxed profits directly to shareholders. Credit unions are not-for-profit cooperatives. Taxpayers do not bear the burden of credit union losses – credit unions themselves do, as they effectively are self-insured through their Share Insurance Fund. Credit unions do pay taxes and have remained true to their mission since the beginning."

Berger released the statement in response to an op-ed from the Florida Bankers Association's CEO and a report from the National Taxpayers Union falsely claiming that credit unions are the financial institutions misusing the tax code.

In addition to Berger's comments, NAFCU Vice President of Legislative Affairs Brad Thaler sent a message directly to members of Congress highlighting the differences between credit unions and banks.

"Without credit unions, the depository institution space would be void of checks and balances in the marketplace, and for-profit banks would be free to increase rates and fees on consumers," Thaler wrote. "Do not be fooled by the bankers – that is why they want you to go after credit unions. If the banker associations were really serious about helping consumers and reducing risk to the economy, they would clean up their own act. Nowhere in their recent attacks do they suggest that they are doing so."

While bankers question credit unions' practices, they don't acknowledge that shareholders are the biggest beneficiaries from their record profits or that they are shrinking their workforce. NAFCU will continue to set the record straight on bankers' attempts to limit competition and hurt the economy.