Study Looks at Benefits of the CU Federal Tax Exemption

Removing the tax exemption of credit unions would reduce tax revenue by $56 billion and reduce economic activity by $120 billion over the next decade, while eliminating nearly 80,000 jobs per year that span, according to an independent study commissioned by NAFCU.

In their report, NAFCU said the authors found bank customers benefit from the role credit unions play in the marketplace.

"The benefit of those better rate offerings extends beyond credit union members to bank customers as well, due to increased competition," the authors stated. The study found a 50% reduction in the credit union market share would cost bank customers an estimated $6.8 billion to $9.9 billion per year in higher loan rates and lower deposit rates. The total losses to bank customers under such a scenario totaled $80.7 billion over the ten-year period examined.

View the full report.