FOR IMMEDIATE RELEASE
CONTACT: Lauren Williams – CUNA Communications; (202) 626-7642; firstname.lastname@example.org
Washington, DC (February 22, 2018) – CUNA President/CEO Jim Nussle wrote a letter to members of Iowa Senate urging them to reject legislation that would place an additional tax on credit unions. Senate Study Bill 3197 would raise taxes on Iowa credit union members and reduce taxes on banks and their stockholders, many of whom do not live in the state. As bank attacks have ramped up in the state, CUNA works closely with the Iowa Credit Union League to combat the issue.
“Simply put: this legislation would raise taxes on Iowa credit union members and reduce taxes on banks and their stockholders, many of whom do not live in the state,” Nussle wrote. “It would make it more expensive for Iowans to access safe and affordable credit provided by not-for-profit financial cooperatives. This legislation is bad for Iowa and we urge this body to soundly reject it.”
Nussle is a native Iowan who represented the state in the U.S. House from 1991 to 2007. He noted that credit unions make up only fourteen percent of the state’s financial market and the competition they provide for-profit banks creates a less predatory environment for Iowans and keeps bank fees from getting even more outrageous. Nussle also cited data that showed Iowa credit union 60-month new car loans average 3.21%, while the same loan at banks average 4.37%, a difference of $940 on a $30,000 car.
“In addition to quantifiable benefits, credit unions also provide Iowa consumers with significant intangible benefits. Credit unions exist to help people and strictly adhere to the “People Helping People” philosophy and their structure lends to a focus on providing exceptional member (customer) service. Credit unions offer full and fair service to all of their members,” Nussle wrote.
Member-owned financial institutions provide great benefits to consumers and Iowa credit unions should be fostered and strengthened not hampered by new taxes as proposed in S.S.B. 3197.
Credit Union National Association (CUNA) is the only national association that advocates on behalf of all of America’s credit unions, which are owned by 110 million consumer members. CUNA, along with its network of affiliated state credit union leagues, delivers unwavering advocacy, continuous professional growth and operational confidence to protect the best interests of all credit unions. For more information about CUNA, visit cuna.org.