Americans see $17B in benefits yearly from tax-exempt credit unions

NAFCU today is sending Congress findings of a new study that shows Americans would lose an annual $17 billion in economic benefits if the credit union federal tax exemption were eliminated.

“The data presented in NAFCU’s tax study illustrates the importance of the credit union business model within the U.S. economy,” said NAFCU President and CEO Dan Berger. “It shows the necessary competitive edge credit unions bring to the financial marketplace that benefits all Americans, regardless of whether they obtain their financial services from a credit union or a bank.”

Reports said Wednesday that House Ways and Means Chairman Dave Camp, R-Mich., may be ready to release a “discussion draft” on tax reform to committee members next week. Meanwhile, Senate Finance Committee Chairman Ron Wyden, D-Ore., is also focused on reform but said he wants to first tackle the tax extenders that expired at the end of 2013.

NAFCU, which holds preserving credit unions’ federal corporate income tax exemption as its top priority, is releasing its 2014 study as lawmakers consider their next steps on broad tax reform. It is encouraging credit unions to use the study in their discussions with lawmakers about the importance of preserving the credit union exemption

The new tax study, conducted for NAFCU by Robert Feinberg, professor of economics at American University, and Douglas Meade, director of research at Interindustry Economic Research Fund Inc., using data from 2005 to 2013, shows the following:

continue reading »

More News