The credit union mission and structure remain unchanged, and so should the credit union tax status, CUNA President/CEO Jim Nussle wrote in a LinkedIn post Monday. Nussle responded to a recent article in U.S. News questioning the tax treatment of credit unions.
The article “demonstrates a misunderstanding of the reason the credit union tax status exists in the first place,” Nussle wrote.
“As member-owned, not-for-profit cooperatives, credit unions continue to exist to promote thrift and provide access to credit for members, particularly those of modest means,” he wrote. “This mission, and the credit union structure has not changed since its inception. Each credit union member is an owner of that credit union, and each credit union returns its profits to those very same members.”
Nussle went on to cite the public policy benefits that come along with the credit union tax status, benefits that amounted to $14.2 billion in consumer benefits in 2016 alone.
“Taxing credit unions in 2016 would account for 0.05% of 2016 federal government spending, funding government operations for 5 hours,” Nussle wrote. “Instead, that $14.2 billion has gone to purchase homes and cars, and into communities served by credit unions.”
Nussle also added that since the inception of the financial crisis in 2008, more than 12 million American have decided to join a credit union.