WASHINGTON — GoWest Credit Union Association President and CEO Troy Stang is pushing back against renewed calls from community bankers to revoke the federal income tax exemption for larger credit unions, arguing the exemption reflects their cooperative ownership and public-service mission rather than their size.
In a Nov. 10 opinion piece published by American Banker, Stang responded to a Nov. 2 column by Rebecca Romero Rainey, president and CEO of the Independent Community Bankers of America. Rainey reiterated the association’s position that credit unions with more than $1 billion in assets should lose the exemption.
Stang said the bankers’ argument misrepresents why credit unions receive different tax treatment. The exemption, he wrote, is based on their status as member-owned, democratically governed cooperatives that return earnings to members and communities rather than shareholders.
‘Miss the Mark’
“Claims connecting the federal income tax exemption to credit union membership requirements miss the mark,” Stang wrote.
He also disputed the notion that credit unions have become a dominant competitive threat. According to figures cited by Stang, credit unions hold 8.8% of financial institution assets, while the banking industry has $26 trillion in assets. He said ICBA member institutions collectively hold more than twice the assets of the nation’s more than 4,400 credit unions.
Stang argued that community banks and credit unions have shared interests and questioned why ICBA directs its criticism at credit unions rather than larger banks and nondepository competitors.
Credit Unions DO Pay Taxes
On taxation, Stang emphasized that the federal income tax exemption does not mean credit unions pay no taxes. He asserted that credit unions accounted for $39.9 billion in federal and state taxes in tax year 2025. The figure was presented in his column without a supporting breakdown.
Stang also rejected criticism of credit union acquisitions of banks, arguing that other banks, not credit unions, account for most bank acquisitions.
The GoWest leader said credit unions emerged to serve consumers who could not obtain financing from banks and continue to provide accessible loans, competitive rates and financial education. Removing their tax treatment, he argued, would hurt the communities and consumers the cooperative model was created to serve.
‘Let’s Stop Pretending’
He pointed to the 145 million Americans who are credit union member-owners and said growth reflects consumers choosing institutions that emphasize affordable services and local communities.
“Let’s stop pretending credit unions are the problem just because they’re succeeding at their mission,” Stang wrote.
Stang’s response was published in American Banker under the headline “Credit Unions’ Income Tax Exemption Is Directly Tied to Their Mission.”
