WASHINGTON--The impact of the credit union tax status on consumers, businesses, and the economy at large was the subject of a message America’s Credit Unions delivered to all Senate offices Thursday.
The Senate is assembling its version of the One Big Beautiful Bill (H.R. 1), and tax-related provisions from the Senate Finance Committee are expected early next week.
The credit union message cited the recent independent study commissioned by America’s Credit Unions that found all consumers, even non-credit union members, would face financial consequences with changes to the tax status.
"Our analysis indicates that removing the credit union tax exemption would cost the federal government $33 billion in lost income tax revenue over the next 10 years. GDP would be reduced by $266 billion, and 822,000 jobs would be lost over the next decade as well. The benefit of better credit union loan and deposit rates extends to bank customers as well, due to increased competition. A 50% reduction in the credit union market share would cost bank customers an estimated $11.9 billion to $22.8 billion per year in higher loan rates and lower deposit rates," the study reads.
America’s Credit Unions, the American Association of Credit Union Leagues, and every state league wrote to senators earlier this week urging them to support the credit union tax status and noting that failing to do so would “be Congress doubling down for big banks while increasing taxes on 142 million Americans who are credit union members.”