Hidden Costs

The credit union tax subsidy costs America billions of dollars. Although credit unions were created to serve those of modest means, they are not required to demonstrate how they do so.

How does this affect you?

In addition to subsidizing credit unions, consumers and communities lose critical reinvestment dollars as they expand.

Why does it matter?

Without proper oversight, it remains unclear whether credit unions live up to their mission and structure.

Emphasizing the impact on the visitor

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Tell Congress it’s time to reform credit unions.

CONTACT CONGRESS

“Based on the latest tax expenditure estimates from the Treasury Department, the credit union exemption is expected to reduce federal tax revenue by about $32 billion over the next decade (2025 to 2034). The Joint Committee on Taxation (JCT) finds the cost of the exemption is about 20 percent larger, based on tax expenditure estimates through 2028, indicating a cost over the next decade of about $39 billion.”

— Tax Foundation Chief Economist William McBride (2025)

“The credit union loophole is a dinosaur of 20th century tax policy and makes no sense in the modern financial services landscape.”

— Center for a Free Economy President Ryan Ellis (2025)

“Too many [credit unions] have been egregiously abusing their tax benefits, costing the government needed tax revenue.”

— Former FDIC Chair Sheila Bair (2025)

“The real cost to communities is billions in lost federal revenue— money that could support schools, roads, and small businesses.”

— Bull Moose Project President Aiden Buzzetti (2025)

“Opaque credit unions are grifting taxpayers with their tax status, while at the same time, not adequately servicing lower income communities.”

— Former Speaker of the Missouri House of Representatives Tim Jones (2025)

“Removing the tax-exempt status from credit unions is one way for lawmakers to continue to create beneficial reform and support all taxpayers.”

— Taxpayers Protection Alliance (2025)

“These new behemoths are using their tax subsidy to distort financial markets, evade transparency, and consolidate the banking sector, all while failing to deliver on their original mission. It is time to end the tax subsidy for credit unions.”

— Washington Examiner (2025)

Hidden Costs

How does this affect you?

Why does it matter?

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