Subject: My Credit Union Matters!
Dear Minister Oliver,
I urge you to support the Capital Growth Tax Credit for credit unions in the 2015 federal budget.
Credit unions and caisses populaires serve more than 10 million Canadians and drive local economic development across Canada. I am one of the millions of Canadians who use a credit union for my banking needs and My Credit Union Matters.
Credit unions are local and entirely Canadian-owned. They employ more than 27,000 people in Canada and serve a greater share of the small business community than many of the big banks. Credit unions contribute on average four times as much of their pre-tax profits than the banks in sponsorships to local teams and events and in donations to local charities.
But the 2013 federal budget raised taxes on credit unions. This is impacting millions of members like me. Higher taxes limit credit unions’ ability to lend to local small businesses and families.
Like banks, credit unions must hold large amounts of capital. Unlike banks, credit unions rely primarily on retained earnings to meet these requirements. Because of their co-operative structure, credit unions can’t easily issue shares like banks do when they need additional capital to grow. Credit unions need to be treated differently than banks.
Credit unions are proposing a new tax credit to support additional lending to local businesses and families – and grow their local economies. This tax credit will generate as much as $700 million in new lending to help businesses, farmers and families.
My message is simple: my credit union matters. And, it should matter to you!
The Government of Canada should support a competitive balance in the financial sector by introducing the Capital Growth Tax Credit in the 2015 federal budget.
Thank you for your consideration. I look forward to your reply.