Lawmakers are proposing a new tax that would impact credit unions like DoverPhila and their members, including you.
Credit unions got their start in the U.S. when banks refused to serve working Americans. They provided a needed alternative so families, farmers, small business owners, and others left behind by big banks had financial options.
Congress recognized the importance of the credit union movement and provided credit unions with the federal income tax status to ensure they continued to meet the needs of underserved people and communities. Credit unions pay billions in state and local taxes each year. The only exception is the federal income tax on profits. And that’s because those profits are returned to you in the form of an end-of-year bonus dividend, more affordable loans, better returns on savings, no-cost financial counseling and literacy resources, and more. For example, DoverPhila offers educational resources at no cost to over 40 local schools to help them meet state curriculum requirements.
More and more people across the country are joining you in choosing to belong to a credit union because they witness the power and benefits of the credit union movement to strengthen the financial well-being of individuals and communities.
Although the credit union movement has grown, it remains a small but vital part of the financial landscape: Credit unions serve 43% of all Americans, but hold only 8.8% of assets in financial institutions, a clear indication of efforts to help people build their savings and improve their finances. The remaining 91.2% of Americans’ assets are held by banks.
Even though most assets are held by banks, big bank lobbyists and some politicians want to eliminate the credit union federal income tax status. A new tax on credit unions would put your financial well-being at risk. It would also eliminate competition for Wall Street banks and increase their profits.
What can you do?
Federal lawmakers need to know how eliminating the credit union federal income tax status would hurt the very people they were elected to serve. Contact your U.S. Representative and Senators and tell them to protect your credit union through America’s Credit Union’s easy-to-use Action Center. Click the button below to read more.
