Proposed ‘Financial Equality’ is a Tax Increase Impacting 1.1 Million Iowans, While Bank Tax Breaks Get Bigger

Feb. 21, 2018

(Des Moines, Iowa) – The following is a statement from Patrick Jury, president and CEO of the Iowa Credit Union League, in response to Senate Study Bill 3197, which was proposed by Iowa Senate Republicans in its ‘Iowa Working Families Tax Relief Act’ this morning:

“Iowa’s credit union movement is deeply opposed to and disappointed by the language in today’s Senate bill that proposes to increase taxes on Iowa’s not-for-profit credit unions and our 1.1 million members, while giving bankers another $28 million in tax breaks and raising the cost of financial services.

Increasing credit union taxes is bad policy. Credit unions put $100 million back into Iowan’s pockets annually with better rates and fewer fees. Simply put, this would be a tax increase on working Iowans who are member-owners of their financial cooperative. This proposed legislation would also effectively eliminate competition and consumer choice, while increasing bank tax breaks at a time when they’ve enjoyed $5.4 billion in record profits the past six years in our state alone.

So who is truly being helped here?

Credit unions are not-for-profit cooperatives who reinvest our money into the local communities we serve. We’re disappointed that the Senate Republican leadership has chosen to pick a political fight with credit unions and their members. This is in direct conflict with the Senate Republicans’ stated goals of reducing the tax burden and helping Iowans keep more of their hard-earned money. In contrast, Governor Reynolds’ proposal does just that. It truly helps working Iowans keep more of their paycheck and does not include a tax increase on credit union members.

We stand united in opposition to any tax increase on credit unions and will use every effort to preserve financial choice for working Iowans.”

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ICUL is the trade association that represents the interests of Iowa credit unions and their more than one million members. Credit unions are not-for-profit, financial cooperatives owned and operated by their members. Iowans use their credit union membership to receive higher interest rates on savings and lower interest rates on loans. For more information about ICUL and Iowa credit unions, visit www.IowaCreditUnions.com. Follow ICUL on Twitter at www.twitter.com/icul or on Facebook at www.facebook.com/iowacreditunions.

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