Members of credit unions are member-owners of a not-for-profit financial cooperative. As a member/owner, those who belong to credit unions have the right to both vote and run for the board of directors.
Each member gets one vote regardless of how much money they have at the credit union, and credit unions’ board of directors are volunteers who receive no compensation for their service. This process guarantees that credit unions are looking out for their members’ best interest and not that of a small group of stockholders.
Now, some bankers and their trade associations are asking legislators to tax credit unions. The truth is, a tax hike on credit unions is a tax hike on all American consumers.
Credit unions were created to provide financial services in a democratic, not-for-profit, cooperative manner—that is, with member ownership and control. Those characteristics are the foundation of why credit unions do not pay corporate income taxes.
If credit unions paid income tax, the contribution to state and federal treasuries would make not one penny difference in the taxes members pay as individuals. But the effect such taxes would have on how much members pay for credit union loans for cars, education, and houses, or the dividends you earn on credit union savings, would be significant.
All taxpayers, whether members or not, benefit from the presence of credit unions in the marketplace. If banks eliminate the credit union tax exemption, there would be only one group that would benefit – the banks and their profits.
The tax structure of all credit unions – including Maine’s credit unions tax structure — is at risk. Everyone can help by asking Congress to preserve credit unions’ tax status as part of tax reforms occurring now. Without that, credit unions would no longer be not-for-profit financial cooperatives that exist to serve you.
Take action now. Visit DontTaxMyCreditUnion.org to send a pre-written email to your member of Congress today, or call them toll-free at 877-642-4223. Simply tell them, “Don’t tax my credit union.”
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- Don’t tax my credit union
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