Many noted when Senate File 2383 was proposed that it would create a level playing field between banks and credit unions. Make no mistake, there is no equality for credit unions in SF 2383. We are different from banks. As not-for-profit member-owned cooperatives, our earnings go back into our members and our communities, not to fill the pockets of shareholders.
This proposed bill would tax our members $2.2 million while banks would realize a $27 million tax cut. Nothing equal there.
Credit unions have a rich history of giving back. We make the American dream of owning a home affordable through competitive rates. We serve those who the banks won’t. We provide financial education to our members who want to improve their financial lives. Our own credit union donated more than $1.4 million to community causes last year and our employees volunteered more than 4,000 hours of their time. It’s why we were created and it’s why we continue to exist today. We’re not unique, all Iowa credit unions share this mission.
There is nothing about this bill that levels the playing field. It’s about the banks wanting to eliminate competition at the expense of Iowa consumers and generate more business for their own coffers. The question remains, is a tax increase on credit unions good for all Iowans or just for banks? It’s time to tell the Legislature to protect financial choice and defeat SF 2383.
University of Iowa Community Credit Union