Entire Congressional Delegation Expresses Support for CUs During Early Stages of Tax Reform
Lansing, Mich. – October 27, 2017 – All 16 members of Michigan’s congressional delegation have expressed their support for maintaining credit unions’ not-for-profit tax status to the Michigan Credit Union League (MCUL).
The consensus from the delegation’s statements was an understanding that the current tax status is what has allowed credit unions to become such trusted financial partners to members and communities. The high-quality, low-cost products and services that positively impact members’ lives are made possible through tax exemption, and a reversal of this policy would have a negative effect on Michigan.
MCUL and member credit unions from across Michigan met with members of the congressional delegation over the past several months to communicate this message, and has been pleased with the overwhelming response of support. Comments from the state leaders show a belief that the credit union not-for-profit tax status not only makes sense for the cooperative structure of credit unions, but also translates into stronger communities and increased financial literacy in Michigan.
“Credit unions are member-owned, community organizations that are vital to small businesses and families across Michigan. That is why I have been a strong supporter of maintaining their tax-exempt status in any tax reform legislation,” said Senator Debbie Stabenow, a member of the Senate Committee on Finance.
U.S. Representative David Trott, serving on the House Committee on Financial Services, said, “Credit unions play an important role in ensuring all Michiganders have access to the financial resources they need to invest, buy a home, build a stable future for their family – to live out the American Dream. As we overhaul our nation’s broken tax code, we must be cognizant of factors, such as credit unions’ not-for-profit tax status, that allow these member-owned institutions to continue to be a mainstay of Southeast Michigan.”
This is the third time MCUL has sought and garnered unanimous support on this issue from the Michigan congressional delegation in the last 15 years.
“At a time when tax reform is a top priority in Congress, credit unions’ not-for profit tax status continues to be a critically important public policy for assuring access to trusted, and affordable financial services, especially for those many households struggling to get by financially,” said MCUL CEO Dave Adams. “The recent Wall Street meltdown and subsequent regulation of bad actors has reaffirmed the necessity for preserving credit unions’ place in the financial services industry. We’re grateful for the continued commitment of support for credit unions and their tax exempt status by Michigan’s entire Congressional delegation.”
The complete statements from each U.S. senator and U.S. representative will appear in the fourth quarter issue of MCUL’s quarterly publication, Contact.