WASHINGTON (5/22/13)--"The current potential threat of the taxation on credit unions is the highest it has ever been in my 20 years that I have been involved in the movement," longtime member of Congress and former Credit Union National Association CEO Dan Mica wrote in a CUinsight.com
While some in the U.S. Congress have promised that the credit union tax exemption will remain unchanged when current tax reform discussions are complete, credit unions must not rest on their laurels, Mica said. Sitting back, feeling secure and doing nothing in this crucial time "is the surest way to guarantee taxation of credit unions," he noted. "Make no mistake about it; there will be tax increases in the future. The government is gasping for revenue."
In his 15 years as head of CUNA and his 20 years in the credit union movement, Mica was instrumental in ensuring that credit unions won many key battles, including:
The Credit Union Membership Access Act (H.R. 1151), which granted credit unions power to serve multiple groups; and
A 2005 credit union tax status fight that ended when then-House Ways and Means Committee Chairman Bill Thomas (R-Calif.) said he had no plans for legislation that would add federal income tax to credit unions, regardless of their size or the diversity of their service offerings.
To prevent credit unions from being taxed this time around, CUNA and its affiliated state credit union leagues have launched a large-scale, nationwide grassroots-mobilization campaign urging America's 96 million credit union members to deliver a united message to the U.S. Congress: Don't tax my credit union!
"Every single day the bankers are pressing for taxation of credit unions. Every single day until the issue has been resolved in our favor all those who believe in the credit union movement should be shouting, "Do not tax my credit union!" Mica wrote.
"On the other hand, if you want to destroy the credit union movement. Do nothing," he said.
A legislative briefing on the tax situation facing credit unions and valuable information on the tools CUNA and state leagues are providing to help credit unions join the tax status fight will both be covered in today's National Webinar on the Credit Union Tax Status.
For the full CUinsight.com
column and more on the free CUNA webinar, use the resource links.