WASHINGTON—After learning CUToday.info obtained a copy of a document being circulated among House Republican members that identifies the CU tax exemption as one of numerous ways the Trump Administration can find money to support the budget reconciliation bill, the Defense Credit Union Council quickly sent a letter to House leaders outlining why the CU tax status should not be changed.
DCUC Chief Advocacy Officer Jason Stverak stated in the letter that DCUC strongly opposes any proposal to eliminate the tax-exempt status of credit unions as part of the “pay-fors” in the upcoming budget reconciliation bill.
“This exemption is critical to ensuring defense credit unions can continue their vital mission of serving those who serve our nation. DCUC represents credit unions stateside and overseas serving military and veteran communities as well as their families, encompassing over 40 million members and having over $525 billion in assets.
“The federal tax exemption for credit unions is not a loophole but a reflection of their not-for-profit structure and unique mission to serve member-owners, particularly those of modest means,” continued Stverak. “Unlike for-profit financial institutions, credit unions are democratically owned and operated by their members, returning earnings to them through lower loan rates, higher savings yields, and reduced fees. Defense credit unions play a distinct role in enhancing the financial well-being of service members and their families, often in challenging and underserved environments.”
The letter outlined the numerous benefits the credit union tax status affords Americans—including servicemembers, and also the consequences of its elimination.
For the full letter click here.
In closing Stverak said DCUC strongly urges congress “to reject any proposal to eliminate the credit union tax status. We ask that you instead focus on policies that enhance financial stability for service members, veterans, and their families. Our defense credit unions stand as partners to Congress in this mission, and we are committed to working with you to ensure the best outcomes for our military community.”