Michigan Delegation Backs Tax-Exempt Status
The Michigan Credit Union League and Affiliates announced that Michigan’s entire congressional delegation has voiced its support for protection of credit unions’ tax-exempt status.
"Michigan lawmakers on both sides of the aisle support what credit unions stand for," MCUL & Affiliates CEO David Adams said in a statement on Monday.
"This latest universal validation of the importance of the credit union tax exemption as good public policy is gratifying and a testament to how effectively our credit union leaders and their members are getting their message across,” Adams added.
The Michigan Credit Union League warned that tax relief for credit unions and their members, which has been in effect since 1934, could be at risk when Congress reforms the tax code.
“Michigan will play an important role in any rewrite of the tax code, with three key players who sit on committees that work on tax issues,” said a Michigan Credit Union League press release.
Republican Rep. Dave Camp of Midland is chairman of the House Ways and Means Committee and Democratic Rep. Sander Levin of Royal Oak is the ranking member. In the Senate, Democratic Sen. Debbie Stabenow of Lansing is a Finance Committee member.
“The tax rewrite only affects federal taxes, and credit unions will continue to pay a range of other taxes,” said the Michigan Credit Union League.
“At the same time, credit unions are lending to small businesses and their members at far larger rates relative to their assets than banks, especially during the 2007-2010 financial crisis, when banks’ small-business lending actually decreased,” the league also said.