“Member-owned credit unions meet the financial service needs of nearly 95 million Americans, and these comments are a testament to the importance of credit unions in the marketplace as they provide their communities with access to capital and other basic services,” Brad Thaler, the vice president of legislative affairs at the National Association of Federal Credit Unions, said in a letter addressed to Ways and Means Chairman Dave Camp and Ranking Member Sandy Levin.
A study released by NAFCU last year found that credit unions provide the economy with $10 billion per year in cumulative benefits, and that altering the tax status of credit unions could have a negative impact on consumers and small businesses, including a reduction in GDP and net loss in government revenue.
“Simply put, the tax exemption is an issue of survival for credit unions,” Thaler said. “Despite what some claim, there remain significant regulatory and statutory differences between not-for-profit member-owned credit unions and other types of financial institutions—including limits on who they can serve and their ability to raise capital. In other countries where the tax exemption has been eliminated…the number of credit unions declined dramatically.”