Mon, Jul 24, 2017
At the request of Senate Finance Committee Chairman Orrin Hatch (R-UT), CUNA sent a letter to both him and Ranking Member Wyden in support of the credit union tax status. The Committee requested stakeholders to submit comments and proposals to the Committee as they continue their work on tax reform.
In the letter, CUNA urges Congress to retain and reaffirm the credit union tax status and goes into further detail explaining the importance of not-for-profit credit unions in the financial services marketplace.
Congress should preserve the credit union tax status because:
- The tax treatment for credit unions continues to serve the purpose for which it was conveyed;
- The tax status represents good public policy, because it causes the creation of substantial benefits to the public, far in excess of its cost; and,
- Taxing credit unions would represent a tax increase on 110 million Americans—taxpayers who paid a total of $1.2 trillion in taxes in 2014—and would likely lead to the elimination of many, if not most, credit unions.
As Congress continues its tax reform efforts, CUNA will continue to advocate on behalf of America’s credit unions and their 110 million members to ensure the credit union tax status is preserved.