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A bipartisan group of 36 House members is urging the House Ways and Means Committee to protect the federal tax exemption for credit unions, citing their essential role in serving families, small businesses and underserved communities.
In a letter sent Friday to committee leadership, the lawmakers emphasized credit unions’ cooperative, not-for-profit structure and their commitment to local lending and financial inclusion. The effort was led by Reps. Juan Ciscomani (R-Ariz.) and Seth Magaziner (D-R.I.) and included the support of 20 Republicans and 16 Democrats.
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“Any changes to the current tax treatment of credit unions would threaten these consumer benefits and would be a tax increase on America’s 142 million credit union members,” the letter stated. “As Congress seeks to implement tax policies that will help everyday working Americans, protecting the credit union tax exemption should be on that list.”
The letter also cited findings from an independent study commissioned by America’s Credit Unions, which showed that credit unions deliver more than $36 billion annually in economic benefits to American consumers through lower loan rates, higher interest on deposits, and fewer fees compared to other financial institutions.
In response to ongoing discussions about tax reform, America’s Credit Unions has mobilized its advocacy campaign, “Don’t Tax My Credit Union,” to generate public support for preserving the exemption. More than 323,000 messages have been sent to Congress through the campaign so far.
Credit union leaders have warned that removing the exemption would disrupt the credit union model and directly impact their ability to offer affordable financial services to members. The bipartisan letter reflected growing concern across party lines about maintaining credit unions’ capacity to serve their communities without added tax burdens.
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Michael Ogden
Editor-in-Chief at CU Times. To connect, email at [email protected]. As Editor-in-Chief of CU Times since 2016, Michael Ogden has led the editorial team in all aspects of content strategy and execution, including the creation of the publication’s exclusive and proprietary research database of the credit union industry’s economic landscape. Under Michael’s leadership, CU Times has successfully shifted to an all-digital editorial product with new focuses on the payments, fraud, lending and regulatory beats. Most recently, he introduced a data-focused editorial product for subscribers that breaks down credit union issues into hard data, allowing for a deeper and more factual narrative for readers. In 2024, he launched the "Shared Accounts With CU Times" podcast, which offers a fresh, inside-the-newsroom perspective through interviews with leaders from the credit union industry and the regulatory world. He dives into pressing credit union issues, while revealing the personalities working behind-the-scenes to push the credit union world forward. His background includes years as a radio and TV anchor/reporter and a public relations and digital/social media manager, where he covered the food and music industries, as well as cooperatives and credit unions. Over the years, he has launched numerous exclusive video and podcast series, including a successful series of interactive backstage interviews with musicians at music festivals, showcasing his social media and live streaming production skills.
