WASHINGTON, D.C. (November 18, 2024) |
Today, the Defense Credit Union Council, DCUC, sent a letter to the Honorable Martin Heinrich, Chairman, and the Honorable David Schweikert, Vice-Chairman, of the Joint Economic Committee, ahead of the committee’s hearing titled “Building on the Success of the TCJA: The 2025 Tax Policy Debate.”
In the letter, DCUC emphasized the importance of preserving the tax-exempt status of credit unions, citing their unique not-for-profit cooperative structure and the significant economic and social benefits they deliver to members and communities across the country.
“The tax-exempt status of credit unions is vital to their mission of people helping people, especially during times of economic uncertainty,” says Jason Stverak, Chief Advocacy Officer for DCUC. “This status enables credit unions to provide affordable credit, financial literacy programs, and tailored services that support low-income, underserved, and military communities.”
Key points highlighted in the letter include:
Direct Member Benefits: In 2022, credit unions provided an estimated $16 billion in financial benefits to over 137 million members, offering better rates on loans, higher returns on savings, and lower fees compared to for-profit financial institutions.
Economic Impact: Credit unions contribute nearly $15 billion annually to the U.S. economy through jobs, community investments, and taxes paid by employees.
Support for Military Communities: Defense credit unions provide essential services, including VA home loans, financial readiness training, and low-rate personal loans, ensuring financial security for service members and their families.
Stverak also warned of the potential economic consequences of eliminating the tax exemption, which could result in a $120 billion loss in GDP over the next decade, 800,000 fewer jobs, and higher costs for consumers due to reduced competition in the financial sector.
“We urge policymakers to recognize the irreplaceable role credit unions play in fostering financial stability and inclusion,” added Stverak. “Preserving their tax exemption is critical to maintaining equitable access to affordable financial services for millions of Americans.”
For more information, please contact Jason Stverak at jstverak@dcuc.org.