Congress is trying to destroy credit unions and the #DontTaxMyCU campaign aims to stop it

by. Clay Wyatt

Ah, Congress. Only 5 percent of Americans approve of it according to the latest poll numbers. And as they continue their push to tax credit unions, Congress is likely losing a good portion of the few fans it had.

Currently, the American Bankers Association (ABA) and Independent Community Bankers of America (ICBA) are urging Uncle Sam to eliminate the tax-exempt status of credit unions. These financial institutions, which currently serve 96 million members, have enjoyed tax-exempt status throughout history. As not-for-profit institutions, they exist to serve members, not shareholders. Also, they have traditionally worked with underserved markets, including the poor, and are often run by volunteers.

Yet, all that could change if bankers are successful in lobbying for credit union taxes — but that won’t happen if the Don’t Tax My Credit Union campaign gets its way.

Why the Push to Tax Credit Unions?

The ABA believes that credit union benefits are being given to those who do not need them and that they “continue trying to leverage their tax advantage for more powers like expanded member business lending and ability to use supplemental capital.” On its website, the ABA also states, “If credit unions want to act like banks, they should be taxed like banks. Plain and simple.”

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