CUNA President/CEO Jim Nussle joined nearly 1,000 credit union advocates in his home state of Iowa Wednesday to push back against a state bill that would increase taxes on the state’s credit unions, while lowering them for banks. Credit unions from all around the state joined Nussle and the Iowa Credit Union League to brave sub-freezing temperatures at the state capitol in Des Moines.
“This bill has been presented as a tax cut for working families, but that’s impossible if it would amount to raising taxes on the state’s more than 500,000 credit union members,” said CUNA President/CEO Jim Nussle. “This is a bad bill for Iowans. It would make accessing safe and affordable credit provided by not-for-profit cooperatives more difficult, and that’s unacceptable.”
It’s estimated that credit union members in Iowa save more than $105 million each year in better interest rates and lower fees. The Iowa Credit Union League says the bill would impact these rates and fees, which is particularly notable since approximately 85% of Iowa credit union loans are consumer loans.
Iowa's 1.1 million credit union members are here to say #DontTaxMyCU to state legislators. The recent Senate tax bill penalizes CU growth and success by increasing taxes on state credit unions. #ProtectFinancialChoice #IowaCreditUnions #ialegis @icul @patjury pic.twitter.com/9gVv3Qa5X6— Jim Nussle (@Nussle) March 7, 2018
“Unable to find broad support for increasing taxes on credit unions, the bank lobby urged Senate Republicans to take a ‘divide and conquer’ strategy,” said Pat Jury, president/CEO of the Iowa Credit Union League. “They failed to recognize that a credit union is a credit union regardless of size, its membership or the services offered. An attack on one credit union is an attack on the cooperative spirit that guides our industry.”
Jeff Disterhoff, CEO of University of Iowa Community CU, estimated that the bill would cost his members $2.2 million in additional taxes, while the same bill gives banks at 48% tax decrease.
Nussle, who served as a Congressman from Iowa from 1991 to 2007, wrote to the Iowa State Senate in February voicing strong opposition to the bill. Nussle's appearance in Des Moines Wednesday was featured in local news coverage from The Gazette and WQAD.