As the Senate Banking Committee prepared for today’s hearing on the impacts of 2025 tax reform, the decades-long, proven value of the credit union tax status headlined an op-ed by America’s Credit Unions President/CEO Jim Nussle.
“For more than 90 years the credit union tax status has proven itself as one of the U.S. government’s best investments,” stated Nussle in the Real Clear Markets op-ed Tuesday.
Taxes are getting increased Congressional attention. In addition to today’s hearing, the Senate Finance Committee’s held a hearing on tax avoidance last week as credit unions and state Leagues reinforced the positive impact of the credit union tax status on consumers and communities during visits to Capitol Hill.
“Credit unions are built differently. They operate differently. At their core, they care about their members and their financial well-being and will work with them to achieve their financial goals. Their tax-exempt status ensures that,” Nussle wrote.
America’s Credit Unions has data showing exactly how the credit union tax status pays off, Nussle added.
“The credit union tax status conveys $35 billion in financial benefits to members and American consumers. In comparison, the credit union tax status ‘costs’ about $2.5 billion. The financial benefits thus represent a near 1,400% annual return on the government’s investment,” Nussle wrote.
“Banks, on the other hand, have received hundreds of billions in bailout dollars and paid nearly just as much in fines for taking advantage of consumers,” he added. “Let’s not forget the government has saved ‘too big to fail’ banks nearly $1 trillion in total since the 2008 financial crisis. And the federal agents that go after the bad banking actors participating in money laundering or Ponzi schemes are paid by us, the American taxpayer.”
These savings—along with statistics showing banks have closed more than 8,600 branches since 2020—show that the credit union tax status should be recognized, celebrated, and preserved.
