A new op-ed from Community Bankers Association of Illinois Chairman David Stanton calls on policymakers to tax credit unions like every other business in the state.
Acquisition Surge: In Crain's Chicago Business (subscription required), the president and CEO of PeopleFirst Bank in Joliet, Ill., writes that the trend of credit union acquisitions of community banks has ramped up in Illinois, fueled by the industry’s tax exemption.
Call for Action: “To ensure credit unions meet community needs and contribute to our much-needed tax base, it is imperative that state legislators take action to enforce sound regulation and halt their unchecked expansion that no longer aligns with their original mission to serve groups with a common bond and people of modest means,” Stanton writes.
Continued Momentum: Credit union acquisitions of community banks—which set a record in 2024—have generated increased attention to the industry’s tax exemption. In a recent Washington Post op-ed, former FDIC Chair Sheila Bair wrote that it is time for Washington to reexamine credit union tax subsidies as Congress considers tax reform this year.
ICBA View: ICBA’s “Repair, Reform, and Thrive” plan and recent open letter to the 119th Congress urge policymakers to use the current debate over tax reform to address credit unions’ tax and regulatory advantages. In a recent blog post, ICBA Past Chairman Brad Bolton said the momentum for policy change is growing as credit unions stray from their founding mission.
