Keeping an eye on the issues. To help Kinecta and credit unions across the country continue to offer our members the best possible products and services, we keep an eye on the regulatory and legislative environments. Our only interest: providing our members a full array of products along with the personal attention only a credit union can give.
Because of our cooperative structure, Congress exempted credit unions from paying federal income tax in 1937. The exemption was affirmed by statute in 1951 and reaffirmed in 1998 in H.R. 1151 – the landmark Credit Union Membership Access Act. Credit Unions do pay payroll taxes and property taxes. Some folks don’t like it that way – the banking industry in particular. Banks pay federal income tax. They also pay their stockholders. And they earn record profits, well beyond even the largest credit unions.
High savings rates. Low loan rates. What’s not to like about a credit union? Yes, credit unions are unique and different – and a necessary and popular financial alternative for millions of Americans.