WASHINGTON: As more than 4,400 attendees flooded the capital for CUNA's Governmental Affairs Conference last week, the American Bankers Association launched an advertising campaign aimed at battering credit unions that, it argued, are getting too big for their britches.
In addition to running a classic inside-the-Beltway campaign of radio and print ads, the ABA hand-delivered to each member of Congress a
The bank lobbying group argued that credit unions have outgrown their original mission and are now indistinguishable from banks — aside, of course, from paying no federal taxes.
The brochure named a handful of credit unions that have been allegedly living the high life, building "extravagant" new headquarters, paying for stadium naming rights and issuing "big toy loans" to help the rich finance yachts and private jets.
The campaign was intended to coincide with the CUNA conference and "make their conversations [with lawmakers] more difficult," ABA Chief Executive Frank Keating said in a memo to his association's board.
CUNA hit back sending more than 9,000 messages from Twitter and other social media channels during its "Don't Tax Tuesday" social media event last week, according to Bill Cheney, president and CEO of the trade group.
"We believe that the banking lobby would be better served focusing on other issues," Cheney said. "Credit unions receive their tax exempt status because, unlike banks, credit unions are not-for-profit, member-owned institutions whose earnings are returned to their members in the form of fewer and lower fees, higher returns on savings and more affordable loans."
And — for now — ABA's dream of pressuring Congress to remove the exemption remains just that. House Ways and Means Committee Chairman Dave Camp (R-Mich.) said last week that a draft tax-reform bill
Cheney said, however, that CUNA was not letting its guard down.
"Sure, the banks might do some more advertising," he said. "But we will continue to make our case, and let Congress hear, "'Don't Tax My Credit Union.'"
