Dear Editor,
Like many in Langley, I am a member of a credit union.
The 2013 federal budget effectively raised taxes on credit unions by phasing out a tax deduction available for credit unions. This increase in tax rate came at a time when operating margins were being squeezed as regulators were looking for an increase in capital to be held.
This has had a damaging impact on all credit unions throughout the country. The higher taxes imposed on credit unions has affected their ability to lend money to families and small business.
Both banks and credit unions have to hold large amounts of capital in reserve. But unlike banks, credit unions can’t easily issue shares like banks do when they need additional capital to grow.
Simply put, credit unions, by their nature of member ownership, are different from banks whose primary responsibility is to deliver profits to shareholders. Credit unions should be treated differently.
My credit union and other credit unions across the country are asking the Conservative government to include a Capital Growth Tax Credit for credit unions in the 2015 federal budget.
This new tax credit would give generate millions of dollars in additional lending possibilities to local Langley businesses and families and will help grow our local economy.
Shane Dyson, Aldergrove