<Insert Date>
<Insert MLA Name and Address>
Dear <Insert MLA Name>,
The <insert Chamber name> is writing to request a meeting with you to discuss the Chamber’s concerns with the provincial government’s decision to withdraw the small business tax benefit announced in Budget 2014. While the BC Chamber network supported the initial decision to defer the implementation of this tax increase until 2016, Chambers across B.C. call on the provincial government to extend the small business tax benefit to credit unions permanently.
In today’s global economic turmoil, banks and credit unions alike are required to build ever-increasing capital to ensure financial soundness. Unlike banks, though, credit unions are member-owned co-operatives that can’t easily access capital markets. Instead, credit unions must rely on retained earnings for capital, whereas banks are able to issue stock on capital markets. For this reason, increasing taxes on credit unions impede the ability of credit unions to grow their retained earnings and thus their capital.
The Chamber has a strong desire to ensure that B.C. families and businesses, whether it’s in our rural communities or our urban centres, can continue to benefit from the competitive financial services offered by local credit unions. It is important to note that credit unions are currently the only financial institution in more than 34 communities across B.C.
Unfortunately, increased taxes after 2016 will only hurt the efforts of credit unions to enable local economic growth as well as their ability to support the province’s business sector. When credit unions pay higher income taxes, their capacity to lend to small businesses, provide service to underserved communities and support local community economic development is reduced.
By standing alongside credit unions, the <insert Chamber name> believes it is standing with small businesses in B.C. by ensuring B.C.’s business markets have access to the necessary financing and banking services that credit unions provide.
For these reasons, <Insert Chamber name>is asking for the opportunity to meet with you for 30 minutes to discuss the needto extend the small business tax benefit that is about to phased-out to credit unions permanently.
We will follow up with your office to schedule a mutually convenient time to meet. Thank you for your consideration on this very important issue to credit unions, the Chamber networkand the community we all serve.
Sincerely,