Stverak: Change to tax status would eradicate many benefits

CUNA reached out to members of Congress Friday after bank visits to Capitol Hill. CUNA Deputy Chief Advocacy Officer for Federal Government Affairs Jason Stverak noted that despite bank attacks on the credit union tax status, credit union financial benefits exceed the value of the “expenditure” by an average of 8.8 times for the last 15 years.

“Taxing credit unions would account for only 0.03% of 2022 federal government spending – only three hours of government operations – while leveling a tax increase on more than 135 million credit union members and eradicating many benefits of credit unions for all Americans,” he wrote.

Stverak also set the record straight on bank sales to credit unions, nothing 0.6% of bank assets have been sold to credit unions in the past decade, 67 banks sold to credit unions, compared to 4,453 bank to bank sales over the same time period.

“Large, out-of-state banks account for two-thirds of assets acquired in bank sales,” Stverak wrote. “Other than the fair price offered, the main reasons bank owners sell to credit unions are: Keeping things local; The willingness to keep branches open and staff employed; and, A shared culture and community service focus.”

CUNA sent a message to members of Congress last week in advance of bank visits.