There is no longer a justification to exempt credit unions from taxes, which would generate billions in taxes if it were not for their exemption, according to a new report by the Tax Foundation. The conclusion was part of a larger report about the overall U.S. nonprofit economy, which the foundation says now comprises 15% of GDP. Federal and state credit unions together generated $82.4 billion in revenues in 2019 and commanded over $1.5 trillion in assets in 2019, equal to 18% of all nonprofit assets.
Federal credit unions generated $7 billion in net income that year and would have been liable for $2 billion in taxes had they been taxed at the 21% corporate tax rate, according to the Tax Foundation. While there still may be a role in today’s economy for credit unions, there is no reason to exempt them from taxation, the report states.
