Protect Taxpayers
and End Big Credit Unions' Free Ride
Can you name a trillion dollar industry that pays no federal income taxes but spends millions to sponsor NFL teams and NBA arenas? You might be surprised to learn the answer is credit unions. With historic tax reform advancing in Congress, now is the time for lawmakers to protect taxpayers and end this outdated and unfair free ride enjoyed by the largest credit unions in the country.
of voters either don't know or mistakenly believe credit unions pay federal income taxes.
of Americans say it's inappropriate for credit unions to spend millions on sports sponsorships
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of voters support a tax plan that eliminates credit unions' current tax exemption if it helps limit any increase to the federal deficit. Only 20% would be unlikely to support it.
$27 billion
Making credit unions pay taxes like banks would generate $27 billion over 10 years that could help lower taxes for every American.
Source: U.S. Treasury Office of Tax Analysis and SNL Financial
The Tax Exemption Benefits Skew Disproportionately to 5% of Credit Unions - Those Over $1 Billion in Assets
Total Share of Tax Exemption Benefit, by Credit Union Size
  • Nearly 75% of the tax benefit goes to the 281 credit unions with over $1 billion in assets, or less than 5% of the entire industry
  • Barely 25% of the tax benefit goes to the remaining 95% of the industry, the 5,448 credit unions with assets of less than $1 billion
Source: U.S. Treasury Office of Tax Analysis and SNL Financial
Criticism of Credit Union Tax Exemption Grows
"There are almost 300 credit unions in America with more than $1 billion in assets each. There is no reason these monster financial institutions should enjoy the same tax-free status as soup kitchens, Goodwill and disaster relief charities."
Yael Ossowski
Deputy Director
Consumer Choice Center
Read what others are saying
The Real Story on Tax Exempt Credit Unions in Your State