Reform Credit Unions

South Dakota credit unions’ free ride on federal income taxes doesn’t make sense anymore, and their once-justified special treatment comes at a cost to the American people.

Credit unions deprive the U.S. Treasury of $2.6 billion a year, while taxpayers in every state pick up the slack.

South Dakota Statistics

• $11,556: Federal income taxes paid annually by an average South Dakota resident making $64,255 a year.

• $0: Federal income taxes paid by credit unions.

Reform Credit Unions is dedicated to calling attention to the critical need to examine and modernize the laws and regulations related to credit unions. These issues include certain credit unions:

• Not paying federal (and often state) income taxes, to the detriment of local communities.
• Abandoning their original purpose and mission to serve low-income people.
• Using their tax subsidies to buy banks and expand their market share in high-income communities.
• Unfairly benefitting from lax oversight by federal and state regulators.
• Avoiding appropriate congressional oversight, as credit unions’ regulatory agency, the National Credit Union Administration, is not strongly regulated

All of this poses risks to local communities and economies and contributes to unfair competitive advantages for large credit unions at the expense of smaller credit unions and community banks. Learn more at Reform Credit Unions.