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Big Banks Push To End Credit Unions’ Tax-Exempt Status

Cooperatively run credit unions used by 96 million Americans could lose their tax exempt status if Congress approves a proposal from big banks to tax the not-for-profit financial institutions. Behind the push to impose a tax on credit unions is the American Bankers Association (ABA), an lobbyist organization representing the $13 trillion U.S. banking industry.

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Big Banks Start Campaign to Destroy Credit Unions

The Move Your Money project was born out of the Occupy Wall Street movement, which began in September 2011. The impetus was the announcement by Bank of America that they were going to impose a $5 dollar monthly fee for debit card users. On November 5, 2011, customers were to close their accounts at major banks and open new ones in community banks or in credit unions. Already infuriated by Wall Street’s recklessness leading to the 2008 financial collapse, the idea caught on like wildfire across the nation.

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Should Credit Unions Pay Taxes?

Credit unions got a big reputational boost during the financial crisis, as banking customers protested what in their eyes were reckless lending practices that led to massive bailouts of traditional banks. Especially in the aftermath of the crisis, as banks made numerous attempts to raise fees to recoup losses numerous attempts to raise fees to recoup losses, many bank customers fled to credit unions for relief.

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Credit Union social media surge hits Washington with #DontTaxMyCU

The credit union mission has always been to ensure secure financial choices at lower costs for their members, but a change in tax laws could greatly hamper that effort unless CU members let their voices be heard.

As a result, the CUNA led #DontTaxMyCU campaign turned heads on a national level, and successfully reminded congressional law makers of the many Americans that love their Credit Union!

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Credit unions fight back against tax repeal efforts

At the moment, it’s a war of words, but very soon the debate to tax credit unions will hit the streets.

This week, credit union supporters from South Florida and throughout the country will descend on Washington, D.C. to “Hike the Hill” and meet with lawmakers to stress the importance of keeping in place the federal tax exemption for credit unions.

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Are Banks Too Big to Compete?

Big banks spent years buying up their smaller rivals to achieve greater market share. Then, having been deemed “too big to fail,” they greedily sopped up billions of dollars in government support during the last recession, while reducing lending to consumers and small businesses. And now, big banks are asking Congress to impose taxes on the tiny rivals that are still left — the credit unions.

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