Pub. 3 2014 Issue 3

l e a d i n g a d v o c a t e f o r t h e b a n k i n g i n d u s t r y i n k a n s a s 26 W HEN CREDIT UNION EXECUTIVES gathered in Washington recently for their annual government affairs conference, they found themselves in an unusual place. Their top legislative priority was the preservation of their tax-exempt status. It’s a sign of success for our advocacy on the issue that credit unions executives must have this conversation with lawmakers. Our advocacy is forcing credit unions to play defense and to answer tough questions. Together, ABA, the Kansas Bankers Association and bankers like you have worked to keep the question of why credit unions should enjoy tax-exempt status front and center with policymakers. We’re continuing to turn up the heat. While the credit union executives were here in Washington, we shared a new brochure with lawmakers on Capitol Hill that demonstrates — with pictures and graphs — how credit unions have outgrown both their mission and tax exemption. It spotlights, for instance, credit unions that have spent inappropriately on elaborate headquarters and sporting event and arena naming rights. It also shows how credit unions are ignoring membership restrictions and their mission of serving low- and moderate- income individuals — the very individuals Congress envisioned them serving. (You can download the brochure, “Credit Unions Have Outgrown Their Mission and Tax Exemption,” at aba.com/ItsTimetoPay.) We further promoted our message in print and radio ads targeted to policymakers. Through the state bankers associations, we also asked bankers like you to write letters and send tweets about the issue. Thousands of you responded, sending more than 26,000 letters to Congress just as credit union execs were “hiking the Hill.” We aren’t forgetting the other tax-advantaged competitor that community banks face. Under the guidance of our Ag Credit Task Force, we have formally asked for congressional oversight hearings on the Farm Credit System and its regulator. We are hopeful such hearings will be scheduled, giving us the opportunity to educate policymakers on how far FCS has drifted from its mission. Congress’ tax reform debate also provides an opportunity to raise these issues. Unfortunately, Rep. Dave Camp (R-Mich.) TURNING UP THE HEAT ON THE CREDIT UNION TAX EXEMPTION By Frank Keating, President and CEO American Bankers Association