Solutions for Life!

Don’t Tax My Credit Union – Your Voice Matters

As we continue to fulfill our mission of serving our members as a trusted financial partner, it’s important to pause and draw attention to an issue that could significantly impact our future – and yours. The tax status of credit unions is under threat, and we need your help to protect what makes us different.

Why This Matters

Credit unions are not-for-profit, member-owned financial cooperatives. Unlike banks, we don’t exist to make profits for shareholders — we exist to serve you. Every dollar in earnings is reinvested back into the credit union in the form of lower loan rates, better savings rates, fewer fees, new products and services, community support and the financial stability of the cooperative. That’s the credit union difference.

Banks want to eliminate our federal income tax exemption, claiming it creates unfair advantage. But the truth is:

  • It comes with other restrictions banks are not subject to, such as field of membership limitations, business lending caps, and the inability to raise capital outside of accumulated earnings.

  • Credit unions only hold 8.8% of financial institution assets, while banks control over 90% — yet we serve 43% of Americans.

  • Our federal income tax exemption is not a loophole — it's a recognition of our structure and purpose.

  • Credit unions generate $208 billion in annual economic impact and save consumers $35 billion every year with better financial offerings.

  • Credit unions pay taxes, including, payroll, property, and other taxes. Plus, members pay income tax on dividends received from credit union accounts.

 

What’s at Risk

If Congress removes the credit union tax exemption, the results would be devastating for members and communities across the country:

✔️ Higher costs for 140 million members
✔️ Reduced access to affordable financial services
✔️ Fewer small-business loans and local job creation
✔️ Disruption to local economies
✔️ Less financial choice for all consumers — even non-members

A minimal, short-term tax gain for Congress would come at the cost of long-term financial harm for American families and communities.

How you can help

We’re calling on our Board, our team, and our members to take a stand. Please take a moment to send a message to your lawmakers. It’s quick, easy, and incredibly important.

Advocacy is simple, and your voice matters. Here are a few ways to get informed and get involved:

 

Together, we can protect the benefits and values that credit unions bring to our communities.

Thank you for your continued membership — and your voice.

Warm Regards,

Jenny Hoyle,

President/CEO

FinanceNicole Mozurkewich