You Paid More in Taxes Than Billion Dollar Financial Institutions

Did you know that in the state of Michigan, the average resident paid $3,821 in federal income taxes, while Credit Unions paid a whopping total of $0?  That means that you, a tax paying citizen, paid more in taxes than an entire $1.3 trillion industry. Why?

Credit unions were granted federal income tax exemption during The Great Depression to encourage their unique mission of serving small groups of consumers of modest means, united by a common bond, such as an employer, church, or community. These credit unions helped provide financial support to people who otherwise may not have had access. These credit unions were small and served a niche purpose.  The large credit unions of today do not fit this description and are not what Congress intended when they granted the tax exemption to begin with.

You may be wondering, how does this affect me?  On a large scale, that is $20 billion in lost tax dollars to the federal government over the next ten years. So when you hear about our national debt, or where tax funds are allocated, or hit a pot hole on a US highway, those tax dollars could have come into play. On a smaller, personal scale, these large credit unions make it hard for community banks to do the job that they were actually supposed to do – serve small groups of consumers of modest means. As large credit unions continue to grow they can offer lower rates and steal the customers of the community banks, thus threatening to put them out of business. These same credit unions however, are under no regulation or obligation to loan back to those communities or individuals at all, thus leaving these small communities in a worse economic situation than they were in to begin with.  They are essentially hurting the very people they were designed to protect.

There is no reason a $90 billion financial institution should be given tax exemption as if they are a charity. If you would like to explore this topic more or find out what you can do to voice your concern, please go to https://www.explorecreditunions.com/.