Special interest groups believe credit unions should be taxed, but the nation’s 96 million members would most likely disagree. Lawmakers in Washington are hearing proposals to remove credit unions’ tax exempt status despite the economy having not yet fully recovered. What critics fail to realize is that if credit unions are taxed, a burden would be imposed on middle and lower-income Americans who rely on credit unions to help manage their finances.
Benefit for Members
Credit unions were created by congress 80 years ago during the Depression to help ease the financial strain on American families. Congress recognized the necessity for making the management of family finances as efficient as possible and decided to enforce a tax exemption for credit unions to better serve their members’ needs. Credit unions help improve these finances by offering better rates on services offered by most financial institutions. They have been extremely successful as membership continues to grow and more are enjoying their benefits. What the special interest groups fail to notice is the millions of low to middle-income Americans impacted if credit unions were to lose their tax-exempt status.
Tax Status Change Could Create Less Competition for Financial Services
The tax statuses for credit unions in Canada and Australia were changed and studies revealed said changes resulted in a lower number of credit unions providing fewer options for managing membership finances. The tax status change also led to an increase in consumer loan interest rates, decreased deposit interest rates, and less competition for financial services. American credit unions wish to avoid this and are fighting back to keep their members safe from the proposed tax burden. The Credit Union National Association has launched a website, DontTaxMyCreditUnion.org, to gain public awareness and highlight the positive impact credit unions have had on the economy.
Inquire about the financial services credit unions offer and start enjoying the benefits of being a member. Call Valley Federal Credit Union’s main office in Brownsville at (956) 546-3108 or stop any of our locations in the lower Rio Grande Valley.