CUNA Updates Credit Union Tax Status White Paper
Friday, July 20, 2018 8:30 AM

CUNA’s Policy Analysis group recently updated and re-posted its white paper on the credit union tax status.

The paper reveals that the tax treatment Congress conveyed on credit unions roughly 100 years ago continues to serve the purpose for which it was created and is one of the best investments that the government makes in its citizens.  

Contrary to banker rhetoric, the credit union tax status has nothing to do with institution size or service offerings – it arises from their unique structure as member-owned, not-for-profit organizations that return earnings to average working-class Americans.  Both small and large credit unions operate in this way – distinguishing characteristics that have not changed since passage of the Federal Credit Union Act of 1934.

Bankers complain that credit unions receive an unfair advantage in receiving a tax exemption, however, the paper notes that recent tax reforms bestowed tax breaks on banks that are over ten times larger than the value of the credit union tax status.   Moreover, each of the nation’s largest three banking organizations received permanent tax breaks that exceed the value of the credit union tax exemption.   

Banks continue to reflect a 93% market share of depository assets – and clearly won’t be happy until they monopolize the depository business.  The paper outlines how consumers will lose big if banks efforts on this front are successful. 

The updated analysis is posted on CUNA’s web site here.

Source:  CUNA Removing Barriers