Banks’ sudden shift in calling for Congress to tax large credit unions is simply about removing credit unions as competitors. America’s Credit Unions President/CEO Jim Nussle made that clear in a recent American Banker article highlighting banks’ call to tax credit unions with more than $1 billion in assets. Nussle pushed back, noting:

"It seems like every day the credit union industry faces a new attack from the bank lobby, but this time, they've really shown their cards. Shifting their target away from all credit unions to now just the largest in the industry shows they know their message is weak with lawmakers and consumers alike," Nussle said. “This isn't about the millions of Americans who will suffer without access to a credit union; this is about credit union competition chipping away at the banks' own bottom lines."

With tax reform discussions underway and members of Congress saying they hope to have a bill on the president’s desk by Memorial Day, Nussle is urging credit unions to make their voices heard by contacting their elected officials and let them know any change to the credit union tax status is a tax increase on more than 140 million Americans who have chosen credit unions.

Credit unions, boards, staff, and members can send a message to officials via the Don’t Tax My Credit Union site.

Nussle and Chief Advocacy Officer Carrie Hunt hosted a webinar Thursday for credit unions at, close to, or above $1 billion in assets for an update on current bank attacks.

Nussle reiterated the urgency and importance of credit unions contacting policymakers, especially as formal tax conversations will likely start in earnest when Congress returns to D.C., next week.

“I’ve been in these meetings as a member of Congress, I’ve helped run them, and it will be one of those situations where everything gets a look when you’re trying to make the numbers work,” Nussle said, adding a few examples of how he’s seen similar meetings proceed. “Our job is to have credit unions on their mind during these talks, knowing that the people who voted to put them there did not vote to have their taxes increased. That’s why it’s so important we bring a unified message that the credit union tax status should not be included in any form of tax bill.”

Hunt explained how America’s Credit Unions is using data to rebut bank arguments about the tax status, and encouraged members to use the Member Activation Program and other resources.