Thursday, May 23, 2024

Voters support taxing large credit unions

The following information shows the result of a recent poll conducted by Morning Consult, The poll was conducted at the request of the American Bankers Association.  Here are the results:

1. Voters are largely not aware of the fact that credit unions pay no federal income tax;

2. It is not appropriate for a tax-exempt industry to spend millions of dollars on sports events and sponsorships since they are exempt from federal income taxes that have to be made up by the rest of  us;

3. Majorities across party lines agree with this finding; and

4. By a 31 percent margin, voters say they are likely to support a tax reform proposal that eliminates the tax exemption for credit unions if it helps limit any increase in the deficit.

Even with the reduction of the corporate income tax rate to 21 percent, it still looks like this:

Banks – 21%        Large Bank-Like Credit Unions – 0%!!!

Congress is fearful that if they vote to impose a tax on bank-like large credit unions – which amounts to a $27 Million pay-for – they will face a very difficult reelection bid.  Our question to that is,

So What?