Last week, in letters to Sens. Mark Warner and Tim Kaine, your League asked for their leadership in helping preserve the credit union tax exemption.
Sen. Max Baucus, who is helping lead the Senate's tax reform effort, has asked all his fellow senators to forward their thoughts by July 26, on which tax exemptions ought to be preserved.
As you know, Senate leaders have said they're taking "a blank piece of paper" approach to the reform debate, noting that all tax exemptions/breaks are essentially gone and they'll be adding back exemptions that make sense from a public policy standpoint.
Credit unions argue that:
1. As not-for-profit financial cooperatives, credit unions continue to fulfill the mission Congress gave them to promote thrift and provide access to credit for provident purposes.
2. The benefit consumers and small businesses receive as a result of the credit union tax exemption far exceeds the cost to the government of providing the exemption.
3. Eliminating the credit union tax exemption would represent a tax increase on America's 96 million credit union members, and would ultimately lead to the elimination of credit unions.
Read the letters (pdf, 831kb)
Note: Obviously, your League has been following this debate with great interest. We realize that the only way to ensure Sens. Warner and Kaine are willing to approach the leadership on this issue is to have credit union folks step up and contact our lawmakers!
Politico has a fascinating article on this process, which basically notes senators aren't rushing in to participate in the reform debate. The only hope at turning that around with regards to Sens. Warner and Kaine is to have credit union supporters like you urge them on!
Visit www.donttaxmycreditunion.org to write Sens. Warner and Kaine today!