Legislative Update
by Jay Kruse
Chief Advocacy Officer
7/10/2018

Good morning!

I hope everyone enjoyed a safe Fourth of July and was able to take in at least one fireworks show! I was able to do some camping at Lake Thompson over the holiday, which helped me recharge as we head into a busy political season. The Fourth of July has always been my favorite holiday. Walking around the campground, seeing all the American flags and celebrations going on, always drives a feeling of patriotism and unity that recently has seemed to escape many in our country. It’s important to remember that regardless of our political affiliation and beliefs, we are all on the same team with the same goal in mind: to make this already great country even better for our future generations!

Due to the holiday, legislative activity was a little slow last week, but things will pick back up this week with both the House and Senate back in session. Both chambers have a full slate for the remainder of the summer, especially considering Senate Majority Leader Mitch McConnell (R-Ky) announced last month that he would cancel most of the August recess to catch up on confirming more of President Trump’s nominees and funding the government.

CUNA Releases Tax Status White Paper.

CUNA’s Policy Analysis group recently updated and re-posted its White Paper on the Credit Union Tax Status. The paper confirms that the tax treatment Congress conveyed on credit unions roughly 100 years ago continues to serve the purpose for which it was created and is one of the best investments that the government makes in its citizens.  

Contrary to banker rhetoric, the credit union tax status has nothing to do with institution size or service offerings, it arises from their unique structure as member-owned, not-for-profit organizations that return earnings to average working-class Americans here in the Dakotas and across the U.S.  Both small and large credit unions operate in this way – distinguishing characteristics that have not changed since passage of the Federal Credit Union Act of 1934.

Even though banks control 93% of the market share of assets, bankers across the nation continue to attack the credit union tax status. This white paper outlines how consumers and the economy will lose big if the bankers’ efforts to monopolize the depository business are ever successful.

If you have questions, concerns, or feedback regarding these or any other advocacy issues, please do not hesitate to contact me at jkruse@cuad.coop. Have a great week!

Jay

 

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