Thursday, February 7, 2013

ABA: It’s Time to End $2 Billion Annual CU Tax Subsidy

Now is the time to eliminate the $2 billion annual credit-union tax subsidy, ABA said yesterday in a question-and-answer-formatted email message to all House and Senate members.

ABA questioned why tax-paying households are still subsidizing the $1 trillion credit union industry, given the current challenges in managing the federal debt.

The credit-union tax exemption “costs the U.S. Treasury about $2 billion each year in forgone tax revenues, while hard working Americans foot the bill,” ABA said. “This bill will continuously grow as credit unions become larger.”

The association explained that there are 195 large credit unions with more than $1 billion in assets. “That’s larger than 90 percent of banks,” ABA said. “Banks, like households, pay taxes. It’s time for credit unions to do so as well.”
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