Organizations join together in protecting credit union tax status
Coming together to call on Congress to protect the credit union tax status and the consumers they serve, more than a dozen credit union organizations joined America’s Credit Unions to send a comprehensive letter to House and Senate leaders Wednesday.
“It’s imperative that lawmakers understand the value credit unions bring to ensuring strong economies across the country and our nation’s financial prosperity. The consequences of changing credit unions’ tax status directly contradict the Trump Administration’s economic goals and would add a new tax on 142 million Americans,” said America’s Credit Unions President/CEO Jim Nussle. “America’s Credit Unions, with the state league system as a vital component, is proud of our efforts to showcase the credit union difference and protect credit unions’ tax status.”
The letter supporting the credit union tax status is part of the comprehensive tax advocacy outreach underway this week in Washington, D.C., as America’s Credit Unions, leagues, and credit union leaders meet with key policymakers to keep credit union concerns top of mind as House committees begin writing tax reform legislation.
The letter states:
“We urge you to oppose any legislation or regulatory action that would alter the credit union tax exemption. Protecting credit unions’ tax status is directly equivalent to protecting your constituents’ wallets and communities. It means protecting a young couple’s chance to afford their first home, a veteran’s ability to start a business, a retiree’s access to a caring local financial partner, and a neighborhood’s access to fair financial services. It means affirming that we, as a nation, value institutions that put people over profit.”
The groups emphasize:
- The critical role of credit unions in the community, and how credit unions work every day to ensure the credit union tax status benefits members and communities. This includes financial education, lower fees, affordable service, serving underserved populations, and support for small businesses. Credit unions deliver an estimated $37 billion in direct consumer benefits each year;
- The difference between credit unions and for-profit banks, as credit unions are owned by their members, and every dollar of surplus is returned to members through better rates and fees, or as capital to strengthen the credit union;
- Strong support for the credit union tax status in the face of legislative threats, as Congress has reportedly examined the tax status as a “pay for” to fund extended and additional tax cuts. The credit union tax status is essential to the financial well-being of Americans; and
- The severe consequences of eliminating or curtailing the credit union tax status, as members would ultimately bear the cost through higher costs, fewer services, diminished access to credit (especially for the underserved), contraction of the credit union industry, and a loss of local community institutions.
Stakeholders can send messages of support for the credit union tax status through the Don’t Tax My Credit Union website, and America’s Credit Unions also has resources that include a social media toolkit, press kit, grassroots handbook, and more.