Credit Union Tax Exemptions
The Florida Bankers Association (FBA) is taking on the unfair tax advantages extended to credit unions by filing a bill to enforce credit unions with gross assets of $500 million or more to pay federal and state income taxes – just like banks. FBA commissioned a national Harris Poll survey to gauge public opinion on this issue. The research found that more than two-thirds (68 percent) of Americans think it is unfair that credit unions with $500 million or more in total assets are exempt from paying state and federal income taxes. Furthermore, a majority of Americans (70 percent) would support Congress now requiring mega credit unions to pay federal and state income taxes.
Congress established credit unions to provide financial services to people of modest means with a common bond. The local, tight-knit credit unions remaining true to their missions will not be impacted by the bill. The focus of this effort is mega credit unions, who rake in billions of dollars in profits each year that are used to pay six-figure salaries, purchase arena naming rights and splurge on primetime advertising while paying zero in state and federal taxes.
Currently, a family of four presently pays more in federal state income taxes than a billion-dollar credit union. This is not fair and it is time for action. The FBA is calling upon Congress to level the playing field for all in the financial industry and pass our bill to enforce mega credit unions to pay their fair share of taxes.