The credit union tax status is one of the best investments the government makes in its citizens, CUNA Chief Advocacy Officer Ryan Donovan wrote to all 535 Congressional offices Tuesday. The latest message, highlighting the numerous public benefits that come with the credit union tax status, follows weekly communications to Capitol Hill from Donovan on important credit union issues.
The latest communication dispels numerous myths about the credit union tax status and points out that the status is based on credit unions’ mission and structure, which remains unchanged from the earliest days of not-for-profit financial cooperatives in America.
Donovan notes that while the tax status includes an exemption from federal income taxes, credit unions pay numerous other federal, state and local taxes. CUNA research has shown that credit unions generate more than $17 billion annually in taxes, including on personal income of staff, through goods and services purchased and through employee spending in local communities.
On the other hand, taxing credit unions would raise enough money to fund the federal government for approximately four hours, while at the same time causing the end of most, if not all credit unions.
This is compared to the nearly $30 billion in tax breaks realized by the big banks in 2018 alone, Donovan said.
The message links to CUNA resources detailing the background and consumer benefits that come with the credit union tax status.