Credit union letters to the editor emphasize stakes for communities in tax battle

Even with dozens of face-to-face meetings and more than 550,000 messages sent to Congress in support of the credit union tax status so far, credit unions are finding more ways to reach out to wider audiences, making sure their communities – and lawmakers’ constituents – understand exactly what’s at stake.  

Minnesota’s Mower County Employees Credit Union President/CEO Stepanie Riles wrote a letter to the Austin Daily Herald urging county residents to “stand up for their access to affordable financial services and contact their representatives in Congress to oppose any attempt to tax credit unions.”

She shared that credit unions pay $23 billion in federal taxes and $13 billion in state and local taxes annually and generate a 1,300% return on the “cost” of the credit union tax status. She also cited the recent study commissioned by America’s Credit Unions showing eliminating credit unions’ tax status would cost the U.S. economy $266 billion in GDP and result in the loss of more than 822,000 jobs over the next decade.

Mower County Employees Credit Union members filled out postcards telling members of Congress “don’t tax my credit union,” and the credit union delivered them to Sens. Amy Klobuchar, D, Tina Smith, D, and Rep. Brad Finstad, R.

CHROME Federal Credit Union President/CEO/Treasurer Bob Flanyak—based in Pennsylvania—wrote to the Observer-Report that the affordable financial services he works to provide every day are in jeopardy in the current tax fight.

The tax status is “a recognition of our cooperative structure and purpose. Unlike banks, we don’t return profits to shareholders. We return them to our members through lower fees, better rates, and reinvestment in our communities.

“In 2024, CHROME Federal Credit Union paid members over $168,000 in rewards. Additionally, we provide members and the community with certified financial counselors available at all branches at no cost. Each year, we have saved members hundreds of thousands of dollars,” he added.

Flanyak also cited America’s Credit Unions’ research that shows a 50% reduction in credit union market share would cost bank customers an estimated $22.8 billion a year in higher loan rates and lower deposit rates.

Resources available as part of the “Don’t Tax My Credit Union” campaign include a press kit with information on engaging local media, as well a social media toolkit, graphics, and more.