District of Columbia CREDIT UNIONS' FREE RIDE
Although they portray themselves as mom and pop shops for people of modest means, today credit unions are a $1.3 trillion industry, with many indistinguishable from banks. The BIG difference – they don’t pay federal income taxes, depriving the U.S. Treasury of roughly $2 billion every year.
- Through intensive lobbying efforts, in addition to lobbying to maintain the tax exemption status, credit unions officials attending the Credit Union National Association’s Government Affairs Conference Hundreds have convinced Congress that they should also not have to pay the D.C. hotel occupancy tax of 14.5 percent. – Credit Union Watch, February 2016
- The net worth of NARC Federal Credit Union (Beltsville, MD) was wiped out prior to its merger to Agriculture Federal Credit Union (Washington, D.C.) by a significant increase in employee compensation.
- In the Reno Gazette-Journal, Drew Johnson, a senior scholar at the Taxpayers Protection Alliance, wrote in an op-ed that Congress should end “the practice of using the tax code to pick winners and losers by removing the nonprofit loophole that allows large credit unions to avoid paying their fair share of taxes.”