In an op-ed published in DC Journal, American Consumer Institute President Steve Pociask lays out why credit unions’ federal income tax status should remain intact, utilizing empirical research and pointing to the obvious consumer benefits.  

“There are 4,600 credit unions serving 140 million Americans. These financial institutions tend to be much smaller in size, on average, than banks and account for about 7 percent of the market share compared to much larger banks,” wrote Pociask. “In fact, the assets of the 10 largest credit unions account for less than 5 percent of the assets of the 10 largest banks.”

He also noted credit unions provide as much as $35 billion in consumer benefits yearly. “In other words, by exempting these financial institutions for $2.8 billion in federal taxes, consumers get between 10 and 16 times the benefit,” he explained. “That is not a bad deal for taxpayers.”

“The evidence suggests that credit unions provide significantly more consumer benefits than they cost taxpayers,” he added.

“When tightening the budget, Congress needs to weigh the costs and benefits,” concluded Pociask. “Based on the empirical evidence and for the sake of consumers, the credit union tax exemption should be retained.”

Get the facts and learn more about the Don’t Tax My Credit Union campaign. Action items to engage with the campaign today can be found on the America’s Credit Unions website.