The Defense Credit Union Council (DCUC) sent a letter to the House GOP expressing its strong opposition to proposals that would eliminate the federal tax-exempt status of credit unions. DCUC's letter comes in light of the topic reportedly being considered as part of the upcoming budget reconciliation bill. In the letter, Jason Stverak, DCUC Chief Advocacy Officer highlighted the critical role the credit union tax exemption serves in enabling defense credit unions to serve military members, veterans, and their families.
Stverak stressed how the federal tax exemption is not a loophole but reflects the not-for-profit, member-owned structure of credit unions. Unlike banks, Stverak noted how credit unions return their earnings to members through lower loan rates, higher savings yields, and reduced fees, and offer vital financial services on military installations and in underserved areas to support service members and their families. DCUC’s letter detailed how the elimination of this tax status would have significant consequences, including:
DCUC will continue to call on Congress to reject any proposal to eliminate the credit union tax exemption, echoing that such a move would undermine military readiness and harm millions of Americans who depend on credit unions for affordable, community-focused financial services. Comments are closed.
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