In a recent opinion piece Credit Union Association of New York CEO William J. Mellin claimed that ending the federal income tax exemption for credit unions would cost each credit union member $10 in financial benefits.
Mellin’s piece, which was published on the Buffalo News website, is part of a larger move by credit union advocates to combat aggressive moves by the bank lobbyists including The American Banker’s Association to persuade Congress to end the long-standing practice of exempting credit unions from federal income taxes.
Ten dollars per member may not seem like much but, as Mellin points out, it adds up to $6 to $10 billion taken out of the U.S. economy annually. Meanwhile, taxing CUs would bring in an estimated $500 – $800 million in revenues for the government. Do the math.
It’s good to see credit unions fighting back against the bank lobbyists, especially when they have facts and figures on their side.
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