An independent study commissioned by NAFCU released today examines the benefits brought to consumers, businesses and the U.S. economy by the credit union federal income tax exemption. Specifically, the study found that removing the tax exemption status for credit unions would reduce tax revenue by $56 billion and reduce economic activity by $120 billion over the next decade, while eliminating nearly 80,000 jobs per year that span.
NAFCU President and CEO Dan Berger lauded the study’s findings as evidence of the tax exemption’s crucial importance to the American economy.
“As not-for-profit cooperative financial institutions, credit unions have always put their members first by providing them with the best financial products, rates, and lower fees,” said Berger. “Today, 125 million consumers are members of a credit union. Consumers continue to recognize the benefits of credit unions and how a credit union can help them achieve financial freedom. The tax exemption status provided to credit unions has yielded dividends to consumers, Main Street businesses, and the U.S. economy through lower fees, better financial products, and better rates.”
The study was conducted by American University’s Robert M. Feinberg and Interindustry Economic Research Fund’s Douglas Meade.
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