Large credit unions’ abuse of their federal income tax exemption has devastating effects on multiple groups. There is no reason a $90 billion financial institution should be treated like a charity with an unfair competitive advantage over similar entities, bearing a large burden on taxpayers in the long run.
These credit unions have negative effects on:
American taxpayers will pick up the bill from credit union federal income tax exemption, to the tune of $20 billion over the next ten years.
Small credit unions:
Even though the majority of small credit unions have stuck to their original mission, the US tax system continues to reward large credit unions for abandoning it altogether. Large credit unions enjoy nearly 75% of the tax benefit.
As credit unions continue to grow exponentially, they are stealing local customers and community banks can no longer compete. Many are having to close their doors to communities that really need them.
Click the map to see what the average person in your state pays vs. credit unions:
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Credit unions were granted federal income tax exemption for a reason, but they abuse the system with no oversight.
Congress never intended for tax savings to be squandered on marketing, executive pay, and sponsorships.