DTMCU Staff

That image of starched, white collared, cordial bankers is coming undone. It’s fueled by a fight over a corporate tax exemption, that credit unions have enjoyed for decades. The long running controversy has remained behind the doors of board rooms, that is until this year. Credit unions are now taking the fight to Youtube.

On July 23, 2013, CUNA is working to endorse a “Don’t Tax Tuesday” (#DontTaxTuesday). This is an online advocacy day that seeks to promote credit unions (#creditunions) and the “Don’t Tax My Credit Union” (#DontTaxMyCU) campaign to the greatest extent before the tax reform deadline. With the ever-increasing presence that credit unions have in social media, this is a tremendous opportunity to let Congress hear the voices of our 96 million credit union members and 7,000 credit unions across the United States.

As tax reform picks up speed in Congress, special-interest groups are storming Capitol Hill to ensure they get favorable tax treatment.

Fortunately, some groups — including credit unions — are looking out for the interests of hardworking Americans in this tax reform debate.

Credit unions around the country want their members to memorize one phrase right now: Don’t tax my credit union.
 
The unions have enjoyed tax-exempt status since the 1930s, but lawmakers could push them to pay with new federal regulations.

Credit Union International Association CEO Bill Cheney wants to stop talk of taxing credit unions before it gets to Congress. Watch his comments here.

Top tax writers in Congress are taking a “blank slate” approach to reworking the U.S. tax code that starts by wiping out hundreds of perks that ordinary taxpayers claim, including sacrosanct policies such as the child credit and the deduction for mortgage interest.

As of June 10, more than 1,500 credit unions–about one in four–were actively participating in CUNA’s three-week-old Don’t Tax My Credit Union initiative, according to Richard Gose, senior vice president of political affairs.

The Senate Finance Committee’s Tax Reform Options Paper, which focuses on tax-exempt organizations that could be targeted for reform, included credit unions. The paper did not make specific recommendations regarding which tax exemptions should be eliminated in new legislation. However, it sourced a 2012 Tax Foundation study that did offer specifics, which included the credit union exemption.

We continue to get questions about credit unions and although a google search may resolve many of these questions it leaves many more people wondering what are the important things they need to know before deciding to make the switch. If you aren’t one of the 94 million credit union members then it might be something to consider as part of your financial portfolio. In fact, joining a credit union is much easier today. You can join through employment, where you live or work and places of worship. You can even join if you’re related to an existing member.

Last week I wrote about banks that offer high-yield checking accounts. This week I want to write about “un-banks”–in other words, credit unions. Hey, consider it equal time. It’s no secret that banks got a bad rap during the financial crisis for their part in risky mortgage lending and for fees that many consumers view as unnecessarily greedy.