Large credit unions should be taxed, says Rob Tayor, president and CEO of ISU Credit Union in Pocatello, Idaho, in a recent op-ed in the Credit Union Journal. Taylor argues that the biggest threat to the credit union movement isn't banks, fintech, or any other outside party, but instead the massive mega-unions who operate like banks without paying income taxes. Read an excerpt from Taylor's editorial below:
As a credit union executive, I’m going to say something so blasphemous I’ll probably lose friends and colleagues in the credit union movement and have bankers cheering: Senator Orrin Hatch may be right.
On January 31st, Hatch (R-UT), the chairman of the Senate Committee on Finance, sent a letter to NCUA Chairman J. Mark McWatters expressing concern “…that the credit union industry is evolving in ways that take many credit unions further from their original tax-exempt purpose.”
Predictably, the trade associations countered with their well-practiced response to any hint of taxation talk by touting credit unions’ not-for-profit structure, and their mission to promote thrift and access to credit for members of modest means.
The problem with these well-worn arguments is they do not address the core issues raised by Senator Hatch, which are similar to my concerns. And while they remain reticent to admit it publicly, I have colleagues from other small credit unions who share my frustrations. The problem with our movement is most of us have been indoctrinated to believe our common enemy are bankers – with their constant thump of the taxation war drums – when in fact the real threat to our future lies within our own industry.
Read more of president and CEO of ISU Credit Union in Pocatello, Idaho, Rob Taylor's Opinion Article in the Credit Union Journal.