Wall Street Journal editorial: Tax credit unions

Northwest Federal Credit Union’s stadium naming-rights deal with the Washington Commanders points to the need for the federal government to tax credit unions, according to a new Wall Street Journal column.

New Column: In his “Best of the Web” column, Wall Street Journal assistant editor James Freeman wrote that as Republicans work next year to prevent further tax increases on companies that pay federal taxes, “they should not ignore outfits that have managed to avoid them.”

ICBA View: Following the stadium deal announcement in August, ICBA said it is the latest example of how credit unions are violating the limits established by Congress to justify their federal tax exemption. ICBA has repeatedly called on Congress to investigate the credit union tax and regulatory advantages, including in recent op-eds on LinkedIn and in American Banker op-ed from ICBA President and CEO Rebeca Romero Rainey.

Increasing Scrutiny: Public scrutiny of credit union policy has continued to intensify this year, with Rep. Emanuel Cleaver (D-Mo.) recently reiterating his support for subjecting large credit unions to Community Reinvestment Act regulations following reports of discriminatory lending at Navy Federal Credit Union and the first-ever Justice Department redlining settlement with a credit union.

Grassroots Resources: Community bankers can use ICBA’s Be Heard grassroots action center to call on members of Congress to hold a hearing on credit union policy. Additional resources are available on the ICBA website.