In a swift response to misinformation about credit unions shared by the Tax Foundation on CNBC this week, America’s Credit Unions pushed back.
“Continued inaccurate and misguided comments about the credit union industry helps for-profit banks at the expense of credit unions that put members first,” wrote Chief Advocacy Officer Carrie Hunt to Tax Foundation President Emeritus/Senior Policy Advisor Scott Hodge Wednesday. Hodge appeared on CNBC this week to question the credit union tax status.
“It is disappointing to see the Tax Foundation once again siding with those who represent the same banks that put profits over people, making unsupported claims, and urging Congress to remove the credit union tax exemption,” Hunt continued.
Credit unions delivered $35 billion in financial benefits to average consumers in the 12 months ending March 2024, while the Joint Committee on Taxation (JCT) estimates the value of the credit union federal tax expenditure was $2.6 billion in 2023.
Hunt correctly noted that credit unions were granted their tax status—and have continued to earn it for more than 90 years—because “the work credit unions do to serve those left behind by the big banks is more important than ever.”
Since 2020, banks have closed 8,600 net branches while credit unions have opened almost 2,000 branches. Federal Reserve data shows credit unions have cured 36% of banking deserts in the past four years while having only 20% of total financial institution branches.
