WASHINGTON—Responding to what it called “misinformation” about credit unions shared by the Tax Foundation during a segment on CNBC this week, America’s Credit Unions has sent a letter to the foundation.
As CUToday.info reported, a Tax Foundation spokesperson was featured during the segment, which was focused on credit union purchases of banks and the movement’s tax exemption.
“There’s just something wrong with what are essentially nonprofit organizations buying taxpaying commercial and profit-making organizations,” said the Tax Foundation’s Scott Hodge during the segment. “I think it's time to reevaluate the tax exemption that the credit unions now have because they're no longer these…membership-serving organizations. They're growing and expanding and they're essentially commercial banks masquerading as nonprofits.”
In response, America’s Credit Unions is pushing back on the comments.
‘Misguided Comments’
“Continued inaccurate and misguided comments about the credit union industry helps for-profit banks at the expense of credit unions that put members first,” wrote Chief Advocacy Officer Carrie Hunt in a letter to Hodge.
“It is disappointing to see the Tax Foundation once again siding with those who represent the same banks that put profits over people, making unsupported claims, and urging Congress to remove the credit union tax exemption,” Hunt continued.
Credit unions delivered $35 billion in financial benefits to average consumers in the 12 months ending March 2024, while the Joint Committee on Taxation (JCT) estimates the value of the credit union federal tax expenditure was $2.6 billion in 2023, Hunt pointed out.
Serving Those ‘Left Behind’
Hunt stated that credit unions were granted their tax status—and have continued to earn it for more than 90 years—because “the work credit unions do to serve those left behind by the big banks is more important than ever.”
Since 2020, banks have closed 8,600 net branches while credit unions have opened almost 2,000 branches. Federal Reserve data shows credit unions have cured 36% of banking deserts in the past four years while having only 20% of total financial institution branches, Hunt added.
CU Backed Candidates Win
Separately, all six candidates supported by America’s Credit Unions PAC and the Cooperative Credit Union Association won in Tuesday’s Massachusetts primary.
ACU said the latest vote tally marks 313 wins by credit union-supported candidates out of 316 races to date in this cycle.
The final set of primaries for this election cycle takes place Sept. 10 in Delaware, New Hampshire, and Rhode Island.
Complete results are available on the Credit Unions Elections Hub.