WASHINGTON–More than half of American voters would support a tax reform plan that eliminates the credit union tax exemption, according to a survey released by the American Bankers Association.
More than half of Americans also don’t want credit unions spending money on multi-million-dollar sports-related sponsorships, the ABA added.
“American voters overwhelmingly are unaware that credit unions pay no federal income taxes, and when told about it, more than half would support a tax reform plan that eliminates the credit union tax exemption to limit deficit increases,” the ABA announced this week as Congress debates a tax reform plan.
The survey was conducted for the ABA by Morning Consult.
According to the ABA, the federal tax subsidy to credit unions with more than $1 billion in assets amounts to $27 billion over 10 years.
“According to the national survey, 85% of American voters did not know whether credit unions pay taxes or mistakenly believed they do,” the ABA said. “Fifty-one percent of voters said they would support eliminating the credit union tax exemption if it helped minimize the impact of tax reform on the deficit. Fifty-six percent of voters agreed that it is inappropriate for credit unions to use their tax exemption to buy multimillion-dollar sports sponsorships, such as the Golden 1 Credit Union Center, where the NBA’s Sacramento Kings play, and the San Diego County Credit Union Holiday Bowl.”
The survey results, along with a Morning Consult infographic, have been sent to a “broad audience in the public policy community,” according to the ABA.
as the Senate debates the latest tax reform plan.
The ABA has also created a website with what it said is “more information” on the CU tax exemption, including state-by-state details.