That’s right, zip, zero, nada. No federal income tax, no state income tax, no bank franchise tax.
As such, they contribute nothing to the infrastructure costs in your growing city, county, state or nation.
Arizona credit unions have over $18 billion is assets and avoid paying over $37 million in federal income tax alone --- not to mention lost state tax revenue -- due to an outdated law from FDR’s New Deal in the 1930s.
This lost tax revenue in Arizona alone would pay the salaries of 357 teachers, 243 social workers and 187 police officers.
Ask yourself what Arizonans need more, the above gainful occupations or another grocery store parking lot credit union?
Nationally, credit unions withhold over two thirds of their tax exemption to pay six- and seven-figure salaries to their execs, obtain professional-stadium naming rights while continuing to spread like noxious weeds into only the highest per capita income neighborhoods.
Far from being the lender of last resort to orphans an widows, credit unions now spurn the underserved in favor of financing second and third homes, hotels and luxury apartment complexes. In fact, less than 10% of the credit-union customer base is now considered “economically distressed."
They long ago abandoned their mission to “serve the underserved” as they were originally chartered to do. Is that how you want your lost revenue to be spent?
It’s high time credit unions paid their fair share of taxes and contribute to the ever-increasing infrastructure costs in our nation. Until then, stick with your local bank for your financial needs. The credit union’s ongoing tax exemption has become nothing less than a patriotic affront to America.
