CUNA President/CEO Jim Nussle released the following statement after NCUA Board Chairman J. Mark McWatters responded to Sen. Orrin Hatch's (R-Utah) recent questions on the federal tax exemption for credit unions.
“We appreciate Senate Finance Committee Chairman Hatch and NCUA Chairman McWatters’ exchange of letters related to the credit union tax status and NCUA’s implementation of the Federal Credit Union Act. America’s credit unions are proud of the service they provide consumers, small businesses and communities, and we welcome the dialogue and awareness. Chairman Hatch asked very reasonable questions related to our tax status and various NCUA actions and procedure. In response, Chairman McWatters correctly states that Congress has conveyed the credit union tax status based on credit unions’ structure as not-for-profit financial cooperatives and their mission to promote thrift and provide access to credit for provident purposes. We are confident that credit unions earn this status every day through the service to their members and communities.
"Chairman McWatters letter also demonstrates that NCUA is appropriately implementing the Federal Credit Union Act and fulfilling its mission to “provide, through regulation and supervision, a safe and sound credit union system, which promotes confidence in the national system of cooperative credit.” Everyone should share the goal of enhanced consumer and small business access to credit unions.
Credit unions vision is that consumers and small businesses choose credit unions as their best financial partner. Credit unions will continue to work with Congress and NCUA to ensure that all have access to safe and affordable financial services from member-owned, not-for-profit credit unions.
"CUNA is eager to tell our story, work with the staff and Senators in the Subcommittee. We appreciate the work that they do.”