Credit Union Tax Bill

The big banks and some in Congress want to raise taxes and impose new fees on 96 million credit union members who represent 40% of all Americans, yet represent only 6% of the assets in financial institutions. And, they want to do this despite the fact that credit unions are not-for-profit and meeting their core mission every day.

As Congress considers comprehensive tax reform, I encourage you to keep credit unions tax exempt.

Credit unions are not-for-profit financial institutions owned by their members. The credit union is not owned by stockholders and it’s not out to make money for someone else. All of the money that a credit union generates stays with the credit union to the benefit of its members.

Credit unions did not cause the financial crisis. In fact, during the financial crisis, Americans benefited from having credit unions in the market place for the same reason that credit unions were established in the first place – so that consumers and small businesses had a place to go when the banks wouldn’t – or couldn’t – lend. During the darkest days of the crisis, credit unions kept lending when others pulled back lines of credit. And over the last few years, millions of Americans joined credit unions. Today, more than 96 million Americans are credit union members.

Some people say that taxing credit unions would help bring down the deficit. However, the benefits of credit unions greatly outweigh the cost of taxing them. Through lower fees on services, lower rates on loans and higher deposits, credit unions benefit their members to the tune of $6 billion each year. And, when there is a credit union in the market place, bank customers benefit too – almost $2 billion a year. Put together, this $8 billion benefit greatly outweighs the $500 million that the Joint Committee on Taxation says the tax status costs the government. It’s a great return on investment and good public policy. But if Congress taxes credit unions, these benefits go away, and my credit union may go away too. That’s not what we need in tax reform.

I hope you will send a strong message to your colleagues: Don’t touch the credit union tax exemption.

To send a letter to Congress opposing the Credit Union Tax Increase Click Here

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