Press
Wisconsin Senator Tammy Baldwin Voices Support for Credit Union Tax Status
MADISON, WI (August 16, 2013) — U.S. Senator Tammy Baldwin, of Wisconsin, told a standing-room-only crowd of credit union supporters in Madison this week that she fully backs credit unions’ continued tax status as corporate tax-exempt institutions.
“Credit unions provide essential services to their members and communities that would otherwise go unmet,” the Senator said. “I have long supported and will continue to advocate that as not-for-profit financial cooperatives, credit unions deserve their tax exempt status. As we move forward with comprehensive tax reform, I will continue to monitor the situation to ensure that access to credit union loans will not be put out of reach for Wisconsin families and small businesses.”
Her remarks came during a visit with employees of CUNA Mutual Group, the Credit Union National Association (CUNA), the World Council of Credit Unions, members of The Wisconsin Credit Union League, and the credit union industry’s research think tank, the Filene Research Institute.
Baldwin expressed pride in having the opportunity to represent the headquarters of CUNA, CUNA Mutual Group and the World Council of Credit Unions. She noted that cooperative businesses are consumer-centric business models that add significant value for families and communities.
“Senator Baldwin understands clearly that credit unions are not-for-profit cooperatives that continue to earn their tax status by providing benefits to consumers and communities in a direct and tangible manner,” explained Tom Liebe, Vice President of Government Affairs at The Wisconsin Credit Union League. “Baldwin continues to be a strong and consistent supporter of cooperatives of all kinds and we are indeed fortunate to have her thoughtful and informed voice in the U.S. Senate.”
Credit unions have urged Congress to preserve their tax status by launching a website, www.DontTaxMyCreditUnion.org, and a nationwide campaign reminding the 96 million credit union member-owners about the financial benefits they’ll lose if the credit unions’ tax status is eliminated through Congressional tax reform efforts.
Since the start of the recession in 2007, Wisconsin credit unions’ members have saved more than $1 billion. Nationwide, between 2005 and 2011, credit unions have saved their members between $4.3 billion and $8 billion each year. Moreover, their presence in the marketplace moderates the pricing of banks, which provides a total of approximately $10 billion in benefits to all consumers every year.