Bigger banks complain that tax breaks for credit unions pose an unfair advantage.
The role of credit unions in the U.S. is growing, as is their customer base. Big banks have been losing their customers to credit unions in part because of frustration over rising banks fees. Now those big banks are pushing to abolish credit unions' tax exempt status. According to a 2010 report from the President's Economic Recovery Advisory Board, eliminating the tax exemption would raise $19 million in taxes over the next decade.
Credit unions say this is an attempt by the banks to eliminate competition. Is it fair for credit unions to continue to get tax breaks despite their growth? Or would the move eliminate an important check on bank fees?