WASHINGTON–A “study” that has called for the elimination of the credit union tax exemption was paid for by the nation’s banks, according to NAFCU.
As CUToday.info reported here, the Tax Foundation has released a report that claims the elimination of the credit union tax exemption would “support sound tax policy” and suggests CUs no longer resemble the institutions granted that exemption in the 1934 Federal Credit Union Act.
The Tax Foundation’s paper uses the credit union tax exemption as a case study for how corporate loopholes could be reformed.
But NAFCU’s vice president of research and chief economist, Curt Long, said in response that there is more to the story.
“The Tax Foundation should disclose who is actually paying for this study: the big banks,” said Long.
“Under the Tax Cuts and Jobs Act, the banks received $95 billion in tax breaks, an amount that far exceed the credit union tax exemption,” Long continued. “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.”