Last week, CBA shared with California Rep. Tom McClintock a recently released report by Sen. Tom Coburn (R- Okla.) that highlights and identifies more than $900 billion in giveaways throughout the Internal Revenue Code. In his Tax Decoder report, Sen. Coburn highlights one special interest tax break that is of particular interest to California bankers: the tax break given to credit unions, which according to the report, cost taxpayers $2.1 billion in fiscal year 2014 and will cost $11.9 billion through the 2018 fiscal year.

In quoting directly from the report, Sen. Coburn called the credit unions’ tax exempt status “a skewed policy that benefits a select few at the expense of the many.” He further stated that “Congress has diluted the original statutory intent and it is clear credit unions no longer have to subscribe to a common bond [and] no longer have the unique purpose of serving the needs of those with modest income,” and added that the exemption “distorts competition within similar institutions and has no economic justification to exist.” 

A copy of CBA’s letter can be accessed here.