U.S. Senator Sherrod Brown is Proud Supporter of Credit Unions and Tax-Exempt Status

U.S. Senator Sherrod Brown has taken an official, public stance in support of the federal tax exempt status of credit unions by means of a June 26 letter to U.S. Treasury Secretary Timothy Geithner.

In his letter, the Senator reminds Secretary Geithner that Congress reaffirmed the exemption in 1998 because credit unions are "member-owned, democratically operated, not-for-profit organizations generally managed by volunteer boards of directors and because they have the specified mission of meeting the credit and savings needs of consumers, especially persons of modest means."

The Senator also adds that the tax exemption is further justified because credit unions:
  • have deep roots in their communities;
  • are tight-knit organizations whose members are united by a common bond;
  • are made up of co-workers, colleagues, and neighbors who join together to become co-owners of 'true community institutions';
  • provide loans so small businesses can hire workers and export products to new markets; and
  • help make college more affordable for students, as well as provide financial education to help families plan their finances and save for the future.

Brown's endorsement of the credit union tax status is particularly important now because the federal government is considering revisions to the country's tax code as Bush-era tax rates are set to expire on Jan. 1, 2013.

This show of support is only the most recent example of the Senator's strong support for credit unions. He is also a sponsor of the Senate bill (S. 2231) that would raise the cap on member business lending, and legislation (S. 3204) that would eliminate the physical disclosures on ATMs, and is in a unique position to help advance both bills because he serves as Chairman of the Senate Banking sub-committee that deals with financial institutions.