CU ad: Don't tax 87 million members
WASHINGTON (10/28/05)--Radio ads sponsored by America's Credit Unions and geared to raise awareness of why the movement's historical tax status remains valid started airing over four Washington, D.C. radio stations Thursday.
"Why do 87 million Americans love their credit union?" the radio ad asks. It then goes on to define the credit union difference; that credit unions are member-owned, volunteer-lead, not-for-profit organizations. The result of the credit union structure, the ad says, is lower fees on services, lower rates charged for loans, and a better return on savings.
The ad warns listeners, who in the chosen market are almost as likely to be lawmakers and regulators and their staffs as consumers, that "some in Congress" may want to "raise taxes on America's 87 million credit union members."
"That would be wrong," the ad states.
The ad is sponsored jointly by the Credit Union National Association (CUNA) and the National Association of Federal Credit Unions through America's Credit Unions.
CUNA has in recent weeks been monitoring reports that some federal lawmakers want to look at the federal income tax exemption for not-for-profits, including credit unions, as a possible means of defraying a portion of the reported $50 billion in costs associated with the government's Hurricane Katrina relief efforts and the federal budget deficit.
The House Ways and Means Committee has scheduled a hearing for Nov. 3 to examine the legal history of the tax exemption for credit unions and to determine whether credit unions are serving the goals intended with their federal-income-tax-exempt status, according to a committee release. No markup of legislation is expected at that time.
"Because credit unions are not-for-profit financial cooperatives, legislators need to know a tax on credit unions is a tax on 87 million Americans," CUNA President/CEO Daniel Mica has said. "Legislators need to understand how a new tax on credit unions would impact their constituents who are credit union members."
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