Don't Tax My Credit Union!

Since their inception, credit unions have focused on serving member needs rather than chasing profits. This people-first approach has made credit unions a great choice for everyone from families to small businesses, thanks to their lower loan rates and higher dividends compared to commercial banks. But some policymakers are proposing removing the tax-exempt status of credit unions, which threatens their benefits and their very existence! Read on to learn more about how you can help.

People Helping People

Credit unions got their start in America by providing financial services to those left by behind by banks - families, farmers, and other working class citizens. By banding together through tough financial times, credit union members have benefitted.

Even today, credit unions benefit their communities in a variety of ways. This includes lower loan rates and higher dividends, free budget counseling, and valuing their members as more than just a number. Credit unions also invest in their community, by donating to charities that help victims of domestic violence, underserved children, food insecure families, and more.

Every year, credit unions pay billions in state and local taxes. Their tax-exempt status only applies to federal income tax on profits, because their profits are returned to members. This status is foundational to credit unions as a whole, and doing away with it hurts not only credit unions, but their members too.

Credit Unions Need You!

Every credit union member needs to join this fight. It’s important for federal lawmakers to know that getting rid of the credit unions' federal income tax status would hurt the people they were elected to serve.

A new tax on credit unions could significantly hurt members' financial well-being. Members may have to pay fees on checking accounts and higher interest rates on loans. In addition, savings accounts may grow at a slower pace if credit unions have to lower dividend rates.

Don't Tax My Credit Union - It's A Tax On Me

Take action now! Send a message to your state representative and senator today, telling them to oppose any effort to add a tax on credit unions. You can reach out to Utah’s State Representative here and to the State Senator here.

Credit unions are often pillars of their local communities, and the sooner you make your voice heard, the better the chance of saving them.