The Credit Union Tax Exemption:
Banks and some Congressional leaders seem to project that credit unions are getting a free ride. Nothing could be further from the truth. Credit unions do pay taxes, including property, sales, local and employer taxes. Although offering the same services as many other financial institutions, credit unions are not like banks because they do not have stockholders. Credit unions, unlike banks, are not-for-profit. This means that all income, including fees and interest paid on loans, are returned to their members in the form of great rates and low fees. Because they are not-for-profit, credit unions are exempt from federal income tax.
Why Credit Unions are good for the economy:
Credit unions promote the economic well being of their members, especially those of modest means, through a system that is member-owned, volunteer-directed and not-for-profit. The credit union mission has always been to provide secure financial choices at lower costs for their members. Thatís why credit unions offer financial products with better returns on savings, reduced rates on loans and lower or no fees on services.
While credit unions are regulated by the federal and state governments, they are also governed by volunteer boards elected by their membership. Credit unions donít answer to stockholders, but to each of their 96 million members. Credit unions invest in people by helping those who have been traditionally underserved by banks. Groups like seniors on fixed incomes, single working moms, minority communities needing greater community investment, and small business owners struggling to raise capital all rely on credit unions for important financial services at reasonable costs. While the big banks have abandoned small businesses for a more lucrative customer base, credit unions promote their small business members in a struggling economy by providing low cost credit alternatives. This credit union investment means millions of jobs across America.
A new tax on 96 million Americans:
Unfortunately, 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. Thatís wrong and will imperil the credit union movement that so many have come to depend on for real financial choice.
A call to action:
Credit unions across the country are mobilizing. The Don't Tax My Credit Union campaign is calling on credit union members to write, email and share our message.
Donít let Congress raise taxes on 96 million credit union members.
Donít let Congress eliminate real financial choice.
Donít let Congress destroy our credit unions.
Concerned credit union supporters can make a significant impact in a variety of ways:
1. Click the graphic to the right to be linked to the official Don't Tax My Credit Union website to send an email to your representatives in Congress.
2. Use social media to share articles on the extreme measures being considered by Congress. Use #DontTaxMyCU on Facebook and Twitter to show your support
3. Folow along with the movement on Twitter and Facebook for the latest updates!