UNCASVILLE, Conn. – Credit unions' membership numbers give them a tremendous advantage over their political opponents, aka the banks, said CUNA Senior Vice President Ryan Donovan Thursday, but only if federal lawmakers believe credit unions can bring their members to speak up on their behalf.
"Lawmakers take notice when they hear credit union numbers, but they take action when they hear from them," he said while addressing the CUNA Community Credit Union & Growth Conference, which ends today.
Noting the meltdown in Congress that has caused the ongoing government shutdown, he understood how credit unions might wonder, given lawmakers' seeming inability to get anything done, why bother fighting so hard on tax reform?
He said that Congress' current 95% disapproval rating is "unsustainable."
"When we are out of this crisis, there will be immense pressure on lawmakers to show that they can get something done," and tax reform could be that something, he said. The tax reform process has been a bi-partisan effort, he reminded, and added that "table is being set for Congress to do something."
"The problems that led us to the fiscal cliff and to this debt ceiling problem have not gone away. We have a debt in excess of $14 trillion and the government has been running annual budget deficits since 2001," Donovan said. It is quite possible that the resolution for the debt ceiling will include instructions for the tax-writing committees to produce comprehensive reform and perhaps expedited consideration, he added.
Donovan said the tax reform process could still take some time, but how the credit union tax status is accommodated in the early drafts of legislation will be critically important.
Regarding bank attacks, Donovan reminded that the banks have pushed tax legislation in Oregon and Illinois and run campaigns of anti-credit union radio ads in Missouri, Illinois, and Washington, D.C., among other things.
In an on-the-spot poll, Donovan canvassed his audience asking how many thought the tax threat to credit unions was real. Ninety-one percent indicated they understood it is real.
He urged the credit union representatives to engage their members in the advocacy efforts and noted the advocacy tools CUNA provides through its "Don't Tax My Credit Union" Web site.