CU tax status one of the best investments a gov’t can make

The tax treatment conveyed on credit unions continues to serve the purpose for which it was created and is one of the best investments that the government makes in its citizens, concludes a new white paper from CUNA on the credit union tax status. CUNA released the white paper to show the numerous benefits realized by Americans due to credit unions’ presence in the market, and how any change to the credit union tax status would result in a significant loss of those benefits.

“Taxing credit unions would result in negative consequences for savers and borrowers, the most severe of which would be the erosion of a credit union option for millions of Americans. If taxed, a significant number of larger credit unions would likely convert to banks and an equally significant number of smaller credit unions would likely liquidate,” the paper reads. “The remaining credit unions would have to pass the burden of taxation through to their members because they are wholly owned cooperatives, increasing the cost of accessing mainstream financial services.

 

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