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. As large credit unions enjoy nearly 75% of the tax benefit, small credit unions can no longer keep up and are struggling to stay afloat.
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.