When you consider the important political issues that face you and your family today, the future of your credit union may not be something that comes to mind - but it should. After all, credit unions are the most regulated and politically debated financial institution in existence. Ever since the signing of the Federal Credit Union Act in 1934, credit unions have had to constantly fight on behalf of their members in the political arena.
Today, the biggest political battle not-for-profit credit unions and their members face is maintaining the tax exempt status of credit unions. Banks and other for-profit financial institutions are now lobbying Congress to create new taxes for credit unions and to restrict the services they can offer.
Banks are saying that taxing not-for-profit credit unions is just a matter of fairness. The truth is, banks have enjoyed record profits for six straight quarters. In fact, banks alone accounted for a full one-third of all corporate profits in 2003.
Banks want credit unions as we know them to go away so they can further monopolize the financial services market and charge even higher rates and fees.
Recent studies have indicated that the average credit union household of four saves over $300 a year by using the financial services of a credit union instead of another for-profit financial institution. These savings would be significantly eroded if credit unions started having to set aside income for paying taxes that would ordinarily be returned to the members in the form of better rates, lower fees and dividends.
So far, credit unions and their members have been up for the challenge politically, but we must not let up. Your credit union urges you to be aware of the political issues that face credit unions and to make it one of your priorities when you engage in political activity. After all, it is you, the credit union member, that can offer the greatest protection possible for your credit union against legislation that would hurt all of us.
