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12

Mar

ABA/ICBA Letter to Chairman Camp

Dear Chairman Camp:

Thank you for beginning the process of comprehensive tax reform. We continue to analyze your
recent discussion draft and its impact on the banking industry in greater detail. As the process
unfolds in the coming months, we strongly urge you to use this opportunity to reexamine existing tax advantages that are outdated, no longer serve the public interest intended, and create competitive inequities between taxed and non-taxed firms. The credit union tax subsidy—especially for large, complex credit unions – is a prime example. While we were extremely disappointed that your proposal did not eliminate this depression era subsidy, we understand that this initial proposal is only the beginning of the process and would argue for its inclusion as the process moves forward. The evidence clearly shows that the tax exemption is outdated, subsidizes wealthy credit union members, and distorts economic competition among financial firms offering exactly the same loans and deposit services.

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