America’s Credit Unions is pushing back on banks’ shift this week to urge Congress to tax credit unions with more than $1 billion in assets, trying to divide credit unions by size. President/CEO Jim Nussle pointed out that this pivot shows banker complaints have always been solely about getting rid of credit unions, as credit unions of all sizes have the same not-for-profit, people first structure.  

“It seems like every day the credit union industry faces a new attack from the bank lobby, but this time, they’ve really shown their cards. Shifting their target away from all credit unions to now just the largest in the industry, shows they know their message is weak with lawmakers and consumers alike,” said Jim Nussle, America’s Credit Unions president/CEO. “This isn’t about the millions of Americans who will suffer without access to a credit union, this is about credit union competition chipping away at the banks’ own bottom lines. 

“For decades, banks have taken advantage of taxpayers for their own profit: they enjoy Subchapter S subsidies, make risky decisions that consequentially rip away people's American dreams, abandon communities, and get bailed out by the government when they overstep,” he added. “Over 140 million American consumers have chosen credit unions as their financial partner because the industry has proven it is safe, and we care about people, and we will step up – in good times and bad. Credit unions have remained a vital part of the financial services marketplace for a reason.” 

Nussle added that not a single penny of taxpayer dollars has gone to bail out a credit union, and taxing credit unions with more than $1 billion in assets would be a tax increase on a significant number of credit union members. There are 74 military-focused credit unions above that threshold that serve more than 35 million servicemembers, veterans, and military families.  A tax on these credit unions is a tax on those military members and families.

The credit union tax status has nothing to do with asset size, reiterated Nussle, but everything to do with their mission and structure that sets  credit unions apart from for-profit financial services providers. 

With tax discussions ongoing, America’s Credit Unions issued a grassroots action alert. Credit union stakeholders are urged to use the Member Activation Program and encourage their members to reach out to members of Congress through the Don’t Tax My Credit Union “Take Action” link.