If you like your credit union you better stay alert !!!! "This month the banking industry, via their lobbying group the American Bankers Association, started a huge lobbying effort to end the tax break credit unions receive as non-profit organizations – a tax break that allows them to run as a non-profit and offer their members services at a much lower rate. Credit unions received federal tax exempt status due to the 1934 Federal Credit Union Act, which was established in large part due to the economic collapse of the Great Depression (they still pay state and local taxes). The banks feel that the federal tax exemption is giving credit unions an unfair advantage. "The trouble is they aren’t banks. "Credit unions are non-profit member cooperatives. Members are usually part of a labor union (i.e. teachers, postal workers), reside in a geographical area, or are part of a certain organization (i.e. a university). The term “non-profit” does not mean they cannot make money – it means that any profits must be used for the purpose of the organization. "
Posted on: Fri, 20 Sep 2013 19:13:28 +0000
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