Highlighting credit union difference with lawmakers ahead of banker fly-in

Before bankers' fly-in to Capitol Hill this week, America’s Credit Unions ensured lawmakers had information spelling out the key differences between credit unions and banks.

Chief Advocacy Officer Carrie Hunt provided data and facts countering banker lobbying efforts to tax credit unions, including:

• Credit unions’ not-for-profit structure that allows them to focus on Main Street—not Wall Street, like banks;
• The current credit union tax status generates $27.5 billion in direct benefits and $38.3 billion in total benefits for consumers, representing a 1,300% return on the government’s investment;
• Banks, who have received trillions in government bailouts, received tax cuts in the 2017 Tax Cuts and Jobs Act that will cost the government $40-50 billion a year over a decade; and
• 1,450 banks enjoy Subchapter S status—which exempts them from paying federal income taxes—and funnel money to investors, not their customers or communities.

She also noted banks hold 91.2% market share of total assets—a near-monopoly position.  

“When bankers come in and ask you to tax credit unions, we urge you to ask them to address some of these points,” wrote Hunt. “We urge you to see past their red-herring arguments and think about what is really going on here: Banks have received hundreds of billions of dollars in tax benefits but don’t put that toward helping working families.”

Engage in efforts to protect the credit union tax status today and learn more about the Don’t Tax My Credit Union campaign.