The National Cooperative Business Association recently sent letters to members of the Senate Finance and House Ways and Means committees, encouraging them to keep the credit union tax exemption intact.
“As not-for-profit, member-owned financial cooperatives, credit unions return almost all of their earnings to their member-owners,” NCBA President and CEO Michael Beall said. “Whether this is in the form of better rates on savings and loans, lower fees, or generally better services, this is a real-world example of how credit unions use the tax exemption to make a difference in the financial lives of their members. In addition, the credit union presence in the financial marketplace demonstrably benefits non-members as well, by providing marketplace competition and enhanced consumer choice.”
Beall said the $10 billion in benefits provided by credit unions to members and non-members “far exceeds the Joint Committee on Taxation estimate of $500 million that a tax on credit unions would generate.”
Senators were required to submit tax reform proposals before the July 26 deadline, but Ryan Donovan, the vice president of legislative affairs at the Credit Union National Association, said that legislators “will be talking to each other over the summer.”
Following CUNA and state credit union leagues’ “Don’tTaxTuesday” social media campaign, approximately one million individuals, including lawmakers, viewed tweets that were posted in support of credit unions and the credit union tax exemption.