Stop The CU Grab

Stop The CU Grab

CONGRESS SHOULD ELIMINATE THE TAX-EXEMPTION FOR ALL CREDIT UNIONS

When credit unions were originally created by law, they were granted a federal tax exemption because they existed to serve those of modest means sharing a common bond and who would otherwise not have access to credit. Today, many credit unions are virtually indistinguishable from tax-paying community banks. Not only do these credit unions offer many of the same products and services as tax-paying banks to the same customer base, but many credit union customers share only the most tangential relationship to the community that their credit union purports to serve. This is especially commonplace with the larger, growth-at-all-costs credit unions. They flaunt these abuses of their original charters freely, acting as tax-free, multi-billion dollar institutions with aggressive promotional campaigns to draw in as many new customers as possible regardless of their relationship to the credit union.

Congress is currently evaluating our tax code for reform in all areas. The credit union industry’s costly and controversial tax exemption is one of many exemptions being reviewed for elimination. As Congress moves forward on reforming the tax code, the credit union industry’s costly and controversial tax exemption continues to be on the table, and should remain in serious consideration for elimination to help alleviate the burden on American taxpayers.

Talking Points on Eliminating the Credit Union Tax-Exemption

September 2013 Kies/Ely Report Finds Credit Union Tax Exemption Unjustifiable

Letters to Congress on the Credit Union Tax-Exemption

TAX CREDIT UNIONS

OPPOSE CREDIT UNION COMMERCIAL LENDING EXPANSION

Credit unions want Congress to expand their member business lending (MBL) authority – a cap that Congress put in place to ensure that credit unions would abide by their statutorily-charged mission to serve people of modest means and avoid excessive risk-taking. With their industry engaged in a full-scale campaign to bully Congress into increasing this cap, it’s important to know the real facts about increased MBL authority and the mega credit unions that are pushing for this change.

 

CREDIT UNION COMMERCIAL LENDING STUDY

See why new MBL legislation is unnecessary and would likely harm the economy

Credit unions are pushing for controversial legislation to expand their ability to make Member Business Loans (MBL). This new study breaks down the data used by credit union advocates in support of these efforts, separating fact from fiction, and also examines the broader negative consequences that granting this authority would have on the economy and stability of the credit union industry as a whole.

Download the Credit Union Commercial Lending Study pdf Download the full 20 page study Download the Executive Summary pdf Download the Executive Summary


OPPOSE CREDIT UNION SUPPLEMENTAL CAPITAL AUTHORIZATION

Credit unions are again looking for any opportunity to unfairly compete with banks by seeking to raise supplemental capital by issuing equity. This directly undermines the basis of the credit union tax-exemption by allowing a credit union to act, in part, as investor-owned corporations with an obligation to assure shareholder profit — except that they will still not pay taxes.

 

Credit Union “Silent Majority” Speaking Out Opposing MBL:

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Opposing Credit Union Expansion through Supplemental Capital Raising Authorization

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