Credit unions put people first. That’s why more than 140 million Americans choose credit unions to meet their financial needs. As not-for-profit financial cooperatives, credit unions exist to serve their member-owners—not Wall Street. In 2025, as the financial landscape grows more complex, credit unions are more essential than ever.
Since Congress passed the Federal Credit Union Act in 1934, credit unions have played a vital role in supporting working Americans—especially when banks turned them away. Now, over 90 years later, the credit union tax exemption is under attack. Big bank lobbyists and some members of Congress want to impose new taxes on credit unions—a direct tax on you and more than 140 million other credit union members.
Why the Credit Union Tax Exemption Matters
The credit union tax exemption benefits consumers, the economy, and local communities by:
- Saving members money – Lower loan rates, reduced fees, and higher deposit interest saved consumers $15 billion per year from 2011 to 2020.
- Boosting the economy – Adding nearly $120 billion to GDP and supporting 80,000 jobs per year.
- Driving competition – Keeping costs down for all consumers, including bank customers.
Meanwhile, the Joint Committee on Taxation estimated that the credit union tax exemption cost the federal government just $1.9 billion in 2019—a small fraction compared to the enormous economic benefits for millions of Americans.
The Local Impact: Marshfield and Central Wisconsin
Losing the credit union tax exemption would have serious consequences for Marshfield residents and Central Wisconsin, including:
- Higher Costs for Members – Credit unions, including Marshfield Medical Center Credit Union, would be forced to raise loan rates and fees, making borrowing more expensive for local residents.
- Reduced Access to Affordable Financial Services – In 2024, 78% of all Wisconsin credit unions granted loans of $500 or less, while over 40,000 loans were provided to individuals with no or low credit scores. If credit unions are taxed like banks, many of these essential services could disappear.
- Less Investment in Local Communities – Credit unions support small businesses, financial literacy programs, and charitable causes. Taxing credit unions would limit these contributions, negatively impacting Marshfield’s local economy.
- Fewer Banking Options, More Big Bank Control – Taxing credit unions would lead to consolidation and closures, reducing consumer choice and allowing big banks to dominate rural communities like Marshfield.
Take Action—Protect Your Credit Union
The credit union tax exemption benefits millions of Americans—including you. Now is the time to speak up. We urge all credit union members and supporters to contact Congress and advocate for keeping credit unions tax-exempt.
Call, write, or visit your U.S. Representatives and Senators. Tell them how your credit union has helped you and why they must protect credit unions.
Together, we can protect the future of credit unions—and ensure that affordable, community-focused financial services remain available for all.
David Murphy, President
Marshfield Medical Center Credit Union