In a recent letter to the National Credit Union Administration, US Senate Finance Committee Chairman Orrin Hatch questioned whether the credit union industry is adhering to its tax exempt purpose. Chairman Hatch cited that “recent actions by the NCUA have further relaxed field of membership constraints” and the activities they can engage in, such as increased business lending authority and opportunities to raise capital from outside investors -- concerns raised by the IBA, the ABA and other state banking associations for years.
In further news, the Tax Foundation has now called on Congress to examine this issue.
Findings from a recent report commissioned by the IBA shed light on large credit unions’ market share and rapid expansion, nationally and in Illinois, and illustrate why it’s time for large credit unions to be taxed just like banks and thrifts.
Joint SBA Letter to Sen. Hatch Regarding CU Oversight