It is important policymakers recognize the key factors behind the credit union difference — which allows the industry to meet the needs of nearly 141 million members — as the tax policy debate continues into next year. The Joint Economic Committee conducted a hearing Tuesday—where the credit union tax status was not mentioned—and the Senate Banking Subcommittee on Economic Policy will conduct a hearing on 2025 tax policy debate today. 

America’s Credit Unions submitted comments for the record for both hearings.

“The tax-exempt status afforded to credit unions allowed them to serve areas and people that banks would not serve. By every account, this legislation has been an unparalleled success,” wrote America’s Credit Unions President/CEO Jim Nussle. “Data shows the credit union tax status brings $35 billion in annual financial benefits to members and non-members. It is one of the best investments the U.S. government makes with an approximate 1,300% annual rate of return.”

Nussle added that credit unions are:

• Not-for-profits, with members getting a vote and benefits going back to members;
• Affordable, because they are focused on making services accessible for members;
• Member-focused, by emphasizing a high level of relationship banking and placing people over profits;
• Safe and well-capitalized, with a much larger share of credit union deposits covered by federal deposit insurance than bank deposits;
• Diverse, which shapes how they serve members and communities; and
• Accessible to members, far more than banks are to customers, according to a Philadelphia Fed report, and other sources.

The letters also reminded policymakers the truth behind bank sales to credit unions — that it benefits all involved, especially the community — and that credit unions paid more than $12 billion in direct payroll, property, excise, and other taxes in 2023, despite claims by credit union opponents.