ALBANY, N.Y. (11/1/13)--Credit unions use their tax status to benefit all Americans, and changing that status would have devastating effects on many of the nation's 96 million credit union members, William Mellin, president/CEO of the Credit Union Association of New York, wrote in an opinion-editorial piece that appeared in Thursday's Buffalo News.
"In fact, for every $1 of income tax on a credit union, each member would lose about $10 in financial benefits," Mellin wrote in the editorial, "Another Voice: Taxing credit unions is a problem for everyone."
"That's $6 billion to $10 billion taken out of the U.S. economy every year--an amount that far outweighs the estimated $500 million to $800 million that would be collected annually by taxing credit unions," he added. "Further, New York credit unions already pay hundreds of millions of dollars a year in a variety of taxes, from payroll taxes to school and property taxes."
Credit unions are exempt from federal corporate income taxes because they are member-owned, democratically operated, not-for-profit cooperatives managed by volunteer boards, Mellin explained. "The value and service credit unions provide to their members and their local communities is why, through good times and bad, Congress has always reaffirmed their federal tax exemption," Mellin wrote.
Credit unions provide economic benefits and much-need member services that would be lost if the tax status changed, he added.
To read the editorial, use the link.