Credit Unions at Risk of Taxation
At First U.S. Credit Union, we are proud to be more than just a financial institution – we are a not-for-profit cooperative owned by our members, focused solely on serving your best interests. Our mission has always been to provide you with the highest value through exceptional service, competitive rates, and low fees. This model sets us apart from for-profit financial institutions and enables us to reinvest in what matters most: YOU, our members.
Currently, members of Congress are in discussions about extending provisions of the Tax Cuts and Jobs Act (TCJA). Unfortunately, some lawmakers are considering a proposal that would impose a new tax on all credit unions. If passed, this tax could have significant and lasting consequences on the credit unions nationwide, including First U.S.
Since the passage of the 1934 Federal Credit Union Act, credit unions have enjoyed tax-exempt status. This exemption is foundational to the way we operate and serves as a key reason to why we are able to offer better rates, lower fees, and a service model that prioritizes the needs of our members over the interests of stockholders. Unlike for-profit banks, credit unions return profits to their members through enhanced benefits and services. A tax on credit unions would disrupt this member-focused approach, leading to higher costs for members and reducing the quality of services we can provide. The impact of such a tax would not be felt equally by all financial institutions. Higher taxes could force credit unions to raise fees, reduce member benefits, or make cuts to services that you have come to rely on.
That is why your voice is so important. We strongly encourage you to take action by contacting your elected officials today. It only takes a few minutes to send a message through the Connect for the Cause platform. This is the most direct and effective way to ensure that lawmakers understand the critical role that credit unions play in the financial well-being of millions of members across the country. By voicing your support for the preservation of the credit union tax exemption, you are standing up for the benefits that First U.S. and other credit unions provide to their members.
As a member-owner of First U.S. Credit Union, your participation in this process is vital. Together, we can ensure that credit unions continue to serve as a trusted, affordable, and member-driven alternative to traditional banks. We appreciate your commitment to protecting the credit union difference and helping to secure the future of our cooperative financial model.