Government Affairs

Iowa's Credit Unions Earn Their Tax Breaks

 

Dale Owen, CEO of Ascentra Credit Union in Bettendorf, wrote an opinion piece for the Quad City Times that talks about why credit unions should maintain their current tax status.

"As tax reform discussions ramp up in anticipation of the 2018 state legislative session, banks are trying to use it as an opportunity to raise taxes on credit unions and eliminate them as a valued choice in the financial services marketplace. Founded on the philosophy of “people helping people,” credit unions are not-for-profit financial cooperatives that return earnings to members in the form of better rates on loans and lower fees. Unlike the structure of a bank, which is designed to generate profits for a select group of stockholders, the credit union cooperative structure has helped more than one million Iowa credit union members save approximately $100 million annually compared to what they would have paid for similar services at a bank."

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