Archive Links

Consumer Archive
CU System Archive
Market Archive
Products Archive
Washington Archive

News Now

Washington
CUNA to Lawmakers: CU Tax Status Is Dictated By Cooperative Structure
WASHINGTON (4/16/13)--The Credit Union National Association continues the fight to preserve the credit union tax exemption, and sent a letter Monday responding to a House Ways and Means Committee request that asked stakeholders to outline why their tax treatment under the current code should continue.

In the letter to lawmakers, CUNA again emphasized the positive effects of the credit union tax exemption, and the need to maintain the exemption going forward.

The letter is one of many being sent to House Ways and Means Committee members. "Congress is essentially starting with a blank sheet of paper as it rethinks the current taxation system, and everything is up for consideration," CUNA President/CEO Bill Cheney explained. The CUNA letter, with those of other stakeholders, will be posted on the House Ways and Means Committee website.

The CUNA letter underscored that credit unions were first made tax-exempt by a ruling by the U.S. Attorney General in 1917, and the U.S. Congress conveyed that exemption from federal income tax to state- and federally chartered credit unions because of their ownership structure and special mission. The exemption has been reaffirmed many times, including in 1935, 1936, 1937, 1951 and 1998, the letter noted.

Credit unions' not-for-profit financial cooperative structure allows credit unions to focus totally on member value and service, and, overall, prevents them from taking the types of risks banks take in the name of profits. The not-for-profit structure also creates significant benefits for the nation's 96 million credit union members, including lower rates on loans, lower fees on services, and higher returns on deposits. Non-members also benefit from the exceptional service of credit unions, which keeps competitive pressure on banks, CUNA wrote.

Monday's letter mirrors discussions that Cheney and other CUNA representatives had last week with four members of the powerful tax-policy committee and about 15 staffers. (Use the resource link to read April 12 News Now story: CUNA Supports CU Tax Status At Congressional Staff Briefing)

For the full CUNA letter, use the resource link.
RSS print
News Now LiveWire
African financial inclusion possible with mobile money: @IMFNews study http://t.co/0V5DTQToxY
11 minutes ago
Louise Herring's birthday is Saturday. 105 years later, her legacy lives on through her kids http://t.co/oMqGADmo0d http://t.co/T3NmS9NqEY
59 minutes ago
#Creditunions in PA and NJ hosted retirement fairs this week @PCUA and @NJCUL report.
1 hours ago
.@TheCCUL's Radebaugh suggests 2nd #RBC comment period in letter to @TheNCUA #NewsNow http://t.co/RylFuynT6g
2 hours ago
#NewsNow today Herring legacy carried forward with merger http://t.co/oMqGADmo0d
4 hours ago