Tax Issues & Bank Attacks

Where We Stand

Credit unions are democratically owned and controlled not-for-profit cooperative financial institutions that take pride in their “People Helping People” philosophy. Credit unions are exempt from federal income tax because of their structure as not-for-profit financial cooperatives and their mission to promote thrift and provide access to credit for provident purposes. 

Impact on Credit Unions

The credit unions' tax status does not create an unfair market advantage. The financial benefits of credit unions' participation in the marketplace amounted to around $14.2 billion in 2016 alone, benefits realized by credit union members and non-members alike. Taxing credit unions in 2016 would account for 0.05% of 2016 federal government spending, funding government operations for 5 hours.  Instead, that $14.2 billion has gone to purchase homes and cars, and into communities served by credit unions.  

Victories We've Won

CUNA, Leagues, and credit unions worked together to help pass a bipartisan amendment on the Floor of the House of Representatives keeping the NCUA out of the appropriations process 

A bipartisan group of 71 House members signed a letter urging the appropriations committee to fully fund the Community Development Financial Institutions (CDFI) Fund. 

Both the Senate and House of Representatives released tax reform legislation -- both left the credit union tax status untouched. 

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