Credit unions have Ohioans’ support

I respond to the Nov. 2 online letter “Ohio’s credit unions don’t pay taxes; donate big bucks to lawmakers to keep it that way” from Scott Pullins of the Ohio Taxpayers Association.

Structurally, credit unions are cooperatives that are owned by their members. Their purpose is to promote thrift, by offering affordable products for personal and familial gain. Philosophically, there exists a mission-focused vision among credit unions to provide the most affordable path to financial freedom. Three million Ohioans recognize the difference, and choose credit unions.

Congress also acknowledges there is a difference, and established an exemption from a single tax in 1937, and twice has reaffirmed the structural, purposeful and philosophically centered mission of credit unions as different. To state credit unions do not pay taxes is factually incorrect. All credit unions pay real and personal property tax, and statechartered credit unions also pay sales and use tax. The only groups questioning the credit-union tax exemption are banks and their trade groups, not taxpayers.

A credit union, small or large, is structurally the same. A recent survey of more than 600 Ohio taxpayers found that more than two-thirds of respondents positively view creditunion growth. The survey results signal an appreciation for the $200 million credit unions place in the pockets of Ohioans ($10 billion nationally) annually through member benefits, which will only increase as credit unions grow.

The credit unions mentioned are composed of everyday Americans, who directly benefit from the not-for-profit, cooperative model. To these memberowners, their credit union isn’t just an institution, it’s a dream-fulfilment engine that leads to a first car, home, or is financing higher- education aspirations.

Congress should take action to help empower credit unions to do even greater things for the communities they serve.

Paul Mercer President Ohio Credit Union League Columbus