Credit unions around the state and around the country are mobilizing to protect the credit union tax status. With recent talk of tax reform on the federal level, it is critical that Minnesota credit union supporters send a strong message to Congress stressing the importance of the credit union corporate income tax exemption – and the benefits it brings to members and the economy. Changes to the credit union tax status would result in higher taxes for 1.5 million consumers in Minnesota who are credit union members, as well as 96 million consumers across the country.
Why are credit unions tax-exempt?
Credit unions exist to serve members, not to profit from them. Since 1934, Congress has provided credit unions with corporate income tax exemption because of their not-for-profit, cooperative structure and the special mission credit unions have to serve consumers.
How do members benefit from credit unions?
All of a credit union’s profits are returned to members in the form of fewer fees, lower rates on loans and higher rates on savings. For every $1 of credit unions’ corporate income tax exemption, $10 is put back into Minnesotans’ pockets.
What can members do to support their credit union?
It’s easy to take action! Just visit www.DontTaxMyCreditUnion.org to contact your U.S. Representative and Senators Al Franken and Amy Klobuchar. Let them know that they should be outspoken in their support for the credit union tax status, and send a strong message: “Don’t Tax My Credit Union.”