ARLINGTON, Va.—NAFCU has sent a letter to the House of Representatives asking legislators to preserve the credit union federal tax exemption.
In the letter to the House Committee on Ways and Means Subcommittee on Tax Policy, NAFCU Vice President of Legislative Affairs Brad Thaler cited the benefits to the U.S. economy from CU’s tax-free status.
"The cumulative benefit credit unions provide the greater economy totals over $17 billion a year, according to an independent study released by NAFCU in 2014,” wrote Thaler. “This number far outpaces the cost of the credit union tax exemption and any potential revenue that would be raised by eliminating the exemption. As the study also shows, altering the tax status of credit unions would have a devastating impact not only on credit union members across the country, but also on consumers and small businesses in general. Eliminating the credit union tax exemption would result in the loss of 150,000 jobs a year, a shrinking of the GDP and a net loss of revenue to the federal government."