Op-ed urges Congress to follow House Ways and Means’ lead and secure the credit union tax status
In an op-ed in RealClearPolitics, America’s Credit Unions President/CEO Jim Nussle outlined the importance of the credit union tax status for Main Street America, highlighting the facts about credit unions’ service to Americans, and why the House and Senate should secure the credit union tax status – including the economic impact to members and non-members alike.
“Credit unions provided members over $27 billion in direct financial benefits last year. That figure rises to $38 billion for all consumers, who see the benefit from banks trying to match credit unions’ rates. This makes the credit union tax status one of the best investments the U.S. government makes, with a roughly 1,200 percent annual rate of return,” Nussle said. “Removing the exemption would have cost the federal government $33 billion in lost income tax revenue over the next 10 years. GDP would have been reduced by $266 billion, and 822,000 jobs would have been lost over the next decade.”
The op-ed was shared with House members Wednesday, as part of America’s Credit Unions’ daily outreach leading up to a potential floor vote on reconciliation.
Nussle described credit union operations across the country, highlighting their commitment to helping those who need them most and how many provide needed services in “bank deserts.” f
“Credit unions also tend to serve members of more modest means. The average income is $71,000, less than half that of a bank-only customer at $164,000. The credit union mission includes helping struggling members escape cycles of debt, achieve financial milestones, and build long-term prosperity,” Nussle said.
“This is why the Ways and Means Committee has chosen to resist—and all of Congress should, too—the banking industry’s Goliath versus David calls to eliminate credit unions’ not-for-profit status,” Nussle concluded. “Removing that status would impose a needless tax on millions of Americans—military members, farmers, small business owners, teachers, and families—and their communities that benefit from local credit unions.”