To Our Valued Members:
I am writing with an urgent message about the future of our credit union and credit unions nationwide. You may have heard that politicians in Washington are considering an overhaul of the federal tax code. I want to alert you to an idea being discussed that could greatly harm all credit unions, including Westerra, and our members.
Banks and some politicians in Washington are talking about taxing credit unions, despite the fact that we are not-for-profit and have been tax-exempt since our inception in the early 1900s. They say we can balance the budget by taxing credit unions, even though credit unions hold only 6% of all financial assets nationwide, and banks hold the rest.
Taxing credit unions could destroy credit unions as we know them, eliminating financial choice for consumers. Credit unions are different from banks—and it is critical that we preserve the option for consumers to choose a not-for-profit credit union.
Westerra is owned and directed by you, the members. Unlike banks that maximize profits for a small group of investors, credit unions exist to serve their members, including working families, small businesses, and the local community. As a not-for-profit financial cooperative, earnings are returned to our members through lower rates on loans, higher dividends on savings and lower and fewer fees. Our not-for-profit structure is the basis for our tax-exemption.
Your credit union’s Board of Directors are unpaid volunteers elected from among the membership to oversee Westerra’s strategic direction in serving members. Volunteers also serve on a Supervisory/Audit Committee to periodically review the credit union’s financial position, and on the Nominating Committee to evaluate and recommend candidates for volunteer positions. Each brings their unique experience, talents, knowledge and perspective to their important role with the credit union. We are committed to serving you.
Credit unions even benefit Coloradans who don’t get financial services from them. The competition created by credit unions in the marketplace forces banks to keep rates lower than they otherwise would be.
So taxing credit unions is not only bad for our nation’s economy, a tax on credit unions is really just a tax on you, the member. That’s why I am asking you to send a strong message to Congress: “Don’t Tax My Credit Union.” It’s easy to take action: just visit www.DontTaxMyCreditUnion.org. Thank you for contacting your U.S. Representative and Senators today.
Chairman of the Board