News

Updating the federal tax code could be the next area in which the Democratic Senate can find common ground with the Republican House, according to Rep. Paul Ryan (R-Wis.) and Sen. Patty Murray (D-Wash.).

Ryan, the House Budget Committee chairman, said he expects Republicans in the House to begin moving on tax reform early in 2014, starting with action on the House Ways and Means Committee, on which Ryan serves.

Listen to an important radio message from the South Dakota Credit Unions:

The Credit Union League of Connecticut’s own Kelly Fuhlbrigge gets a quick tip about how to best reach your congressperson from Connecticut’s 5th District Representative, Elizabeth Esty. The Congresswoman affirms how she counts each and every contact and how she especially takes notice of calls to her local office.

This is in response to Rick Kahler’s Nov. 24 column, “Level the playing field between banks and credit unions.” While Kahler makes an effort to present a “fairness” approach to the taxation of financial institutions, he fails to provide an accurate portrayal of the fundamental differences between credit unions and banks, and therefore, his rationale is inaccurate and very misleading.

With tax reform on the Congressional agenda, an old idea has been floated once again to cut the federal income tax exemption afforded to credit unions.

The discussion has struck a chord with credit union associations across the country whose members are certain of where the threat originated.

Stewart Thomas has banked at Sunstate Credit Union in Gainesville for 25 years.

“They’re community based. All the money deposited in the banks is used for loans inside the community,” said Thomas.

Banking sources say tax reform is their best chance in years to change the century-old tax status of their chief competitors. Credit unions are taking an equally aggressive stance, seeing tax reform as an opportunity to solidify support for their tax status.

Listen to South Carolina Federal Credit Union CEO Scott Woods speak about the Don’t Tax My Credit Union campaign on ABC News.

As the government shutdown continues, credit unions whose members are federal workers offering low-rate loans and other assistance. Here is just a sampling, but check out your credit union if you need money to tied you offer while your paycheck is delayed because of politics:

In 1934, the Federal Credit Union Act set the foundation for the organization of federal credit unions. A federal credit union was defined as a “cooperative association organized…for the purpose of promoting thrift among its members and creating a source of credit for provident or productive purposes.”