Green Light for Grassroots: Why Taxing Them is a Red Light for Millions

By Kevin Oswald, Government Relations Associate

Grassroots movements are critical in shaping policy and ensuring that the needs of members are heard, especially when it comes to defending the interests of credit unions. At its core, grassroots advocacy involves mobilizing individuals to push for change from the ground up. In the case of credit unions, this means ordinary members—not just executives or lobbyists—coming together to voice their opposition to potential tax changes or other harmful policies.

Grassroots advocacy is especially important right now. As early as this week, the House Ways and Means Committee will be holding a “red light, green light” meeting to discuss potential pay-fors for their proposed budget and tax reform legislation. This is a closed-door meeting where lawmakers will decide which groups they can afford to anger politically by taxing them to fund the new budget. The credit union tax-exempt status has been flagged as a potential target, and a separate proposal to remove the tax exemption for credit unions with assets over $1 billion will also be discussed.

It is clear lawmakers fail to grasp the far-reaching effects of taxing credit unions. If we were to pay the federal income tax it would drive up costs in terms of higher rates and fees, many credit unions would be forced to close branches, and the communities we serve would suffer the loss of affordable financial services.

Now, more than ever, it is crucial for us to raise our collective voices. We need to make it clear to Congress that taxing us would have far-reaching consequences and that we won’t stand by as they remove our tax-exempt status. Time is running out, and we cannot let Congress set this dangerous precedent.

Now is the time to give a green light to your advocacy and ensure Congress gives a red light to taxing credit unions. Here’s the most immediate way for you to act:

Visit CrossState’s Grassroots Action Center and send a “Don’t Tax My Credit Union” message to your member of Congress. Simply click the link, fill in your contact information, and submit!

Quick, simple grassroots actions make a big impact—especially when lawmakers hear directly from those who rely on credit unions for safe, affordable financial services.