November 23, 2008
Nevada Business Journal Discusses Tax Exemptions for Credit Unions
"Credit Unions: Unfair or Necessary Financial Entities?"
By Jessica Santina
Indeed, a 2005 academic study by The Tax Foundation estimated that between 2004 and 2008, the country suffered a $12.6 billion tax loss resulting from credit unions' tax exemption status.
However, as many in the credit union business point out, the federal government has maintained their tax-exempt status for decades. "In 1973, Congress elected to exempt credit unions from federal income taxes because they are nonprofit, mutually-owned, democratically controlled institutions that have no capital stock, rely heavily on volunteers and in many cases the support of sponsoring companies," Kertman said. "The tax exemption was deliberated, reviewed and reaffirmed by Congress again in 1998. The reasons to maintain the tax exemption remain true today."
