ABA: Americans Want Congress to Examine CU Tax Exemption & Allow Cannabis Banking
A new survey commissioned by the American Bankers Association has found consumers believe Congress should examine the credit union tax exemption, and also allow cannabis banking.
In the survey conducted by Morning Consult on behalf of the ABA, the trade group said, “U.S. consumers are generally unaware of the differences between banks and credit unions and believe credit unions should be held to the same standards as the banks they compete with for customers every day.”
According to the ABA, the survey found 67% of respondents said Congress should examine whether credit unions are providing enough community benefit to warrant their existing tax exemption, while only 14% opposed such an examination.
“It has been nearly 20 years since Congress last held a hearing to conduct oversight of the federal tax exemption that credit unions receive,” the ABA said.
Low Awareness
In addition, the ABA said its survey found just 20% of Americans are aware that credit unions do not pay federal taxes, while 80% are unaware of credit unions’ tax status.
“In fact, nearly a third of consumers mistakenly thought that credit unions do pay federal taxes,” the ABA said. “Of those surveyed, just 19% believe credit unions should not pay federal taxes. A majority of consumers also believe that credit unions should be subject to community reinvestment reporting requirements that quantify their impact on all segments of their communities, including low- and moderate-income areas, just like banks are (55% in support vs. 16% in opposition, respectively).”
“The last time Congress held an oversight hearing on credit unions the first iPhone was still two years away from hitting the market,” said ABA President Rob Nichols in a statement. “Since that time, the credit union industry has exploded, increasingly prioritizing growth by advocating for looser membership rules, raising money from investors, and even buying up taxpaying banks. This runs contrary to their congressionally mandated mission to prioritize service to lower- and middle-income communities. Americans agree that it’s time for Congress to finally hold credit unions accountable.”
Support for Cannabis
In addition, the ABA said its survey also found that by greater than a 3-to-1 margin (63% support vs. 17% oppose) U.S. adults support Congress passing legislation that allows cannabis businesses to access banking services and financial products like checking accounts and business loans in states where cannabis is now legal.
The full report can be found here.