US credit union leaders have been engaging with federal government and Congress officials as part of their efforts to maintain the industry’s tax exemption.
In January, America’s Credit Unions , the federal credit union apex, launched the campaign ‘Don’t Tax My Credit Union’ in response to an ad by the American Bankers Association, which questioned the income tax exemption.
Conventional banks have been lobbying against the exemption for many years and are redoubling their efforts following a change of government. The House Ways and Means Committee has already conducted two tax reform hearings in Congress, and a report on potential government spending reductions included revoking the credit union tax status as an option to counter tax cuts.
The National Business Cooperative Association (NCBA-Clusa) warns that engagement in the ‘Don’t Tax My Credit Union’ campaign is at a critical juncture, with reports suggesting the House Ways and Means Committee aims to mark up its tax legislation in two weeks.
America’s Credit Unions says it will continue to lead a unified tax advocacy strategy among credit unions, leagues and other industry partners to ensure the credit union tax status is protected.
Throughout April and May, representatives from America’s Credit Unions, the Missouri Credit Union Association and credit union leaders from Arkansas and Oklahoma met with Congress officials and their staff to encourage them to support the tax status and advance other priorities.
The apex is encouraging members to continue writing to their lawmakers and contribute op-eds and letters for local news to impact decision-making.
Greater Iowa Credit Union president and CEO, Scott Zahnle, contributed an article to his local publication, Ames Tribune, in which he urged Iowans to take action, explaining that more than 1.5 million Iowans, including the over 113,000 credit union members living in Iowa’s 4th Congressional District, rely on credit unions for people-first financial services.
The article also highlights credit unions’ co-op ethos, arguing that they are not-for-profit financial co-operatives owned by and operated for the benefit of their members.
“As cooperatively owned institutions, credit unions succeed when people come together,” he wrote. “Now, more than ever, we must unite to protect credit unions as a vital financial partner.”
Zahnle’s district is represented by Representative Randy Feenstra, R, who serves on the House Ways and Means Committee.
America’s Credit Unions is encouraging other credit unions to join the ‘Don’t Tax My Credit Union’ campaign and has shared a range of Member Activation Program’s Don’t Tax My Credit Union resources, including sample outreach.
