Tell Ottawa My Credit Union Matters!
Did you know?
Higher taxes are limiting credit unions’ ability to lend to local small businesses and families and contribute to important community groups and projects. Just like banks, credit unions are required to hold large amounts of capital. But unlike banks, credit unions rely primarily on retained earnings to meet these requirements. By increasing taxes on credit unions alone, the 2013 federal budget has made it harder for credit unions to grow and support local families, farmers and businesses.
Why credit unions matter
Credit unions are different than banks. Both offer similar services and compete in the same sector, but credit unions are smaller, locally focused and, as member-owned co-operatives, are capitalized very differently. There is only one major source of capital for credit unions: retained earnings. Retained earnings – the net income left over that isn’t distributed to members – is what credit unions rely on when they need more capital; because they can’t easily issue shares on capital markets like banks do.
Credit unions drive local economic development in Canada and they are 100 per cent Canadian owned. More than 10 million Canadians, or almost a third of the population, are credit union members. Credit unions sponsor local sports teams, charities and events; they are large employers in small communities; and they invest more than $37 million annually in the Canadian economy. Credit unions are the only financial institutions in over 380 Canadian communities and offer essential financial services that help to strengthen those communities and support local jobs.
So what can we do?
Credit unions are proposing a new tax credit to re-establish a competitive balance between credit unions and the big banks. Based on growth in retained earnings, it is estimated that this tax credit will generate nearly $700 million in new lending to help businesses, farmers and families invest. If we want the federal government to adopt this new tax credit, we need to send our message to Ottawa: my credit union matters!
Sending a message
If you want to support your local credit union, please visit mycumatters.ca to take action to get our elected officials listening to why credit unions make a difference.
It’s easy to make your voice heard: This page on the mycumatters.ca site lets you easily send an email message directly to your member of Parliament about why credit unions matter. You can also find your MP on Twitter and tweet them at mycumatters.ca/tweetyourmp
Please help us take action and create awareness about this concerning issue.