WASHINGTON—The Defense Credit Union Council has sent a letter to the leaders of the Senate Banking Committee and House Financial Services Committee addressing “misconceptions” about credit unions’ tax status driven by banks.
In the letter, DCUC Chief Advocacy Officer Jason Stverak provides an overview of why credit unions’ tax-exempt status is not only justified but essential to the mission of the movement.
Stverak, in his letter to Congress, refers to an op-ed published in CUToday.info titled “Debunking Misconceptions: The Truth About Credit Unions’ Taxation and Community Banking.”
“Credit unions were granted their tax-exempt status by Congress in the 1930s in recognition of their unique not-for-profit structure and their mission to serve members rather than generate profits,” Stverak told Senate and House banking leaders. “Unlike banks, credit unions operate as member-owned cooperatives, and earnings are reinvested to directly benefit their members. These benefits include lower interest rates on loans, higher returns on savings, and lower fees.
“This tax status allows credit unions to focus on serving communities—especially those who might otherwise be left behind by traditional financial institutions,” Stverak added.
To read Stverak’s op-ed in CUToday.info, click here.