The National Association of Federal Credit Unions (NAFCU) today released
a new study on the value of the credit union federal tax exemption that
shows Americans would lose an annual $17 billion in economic benefits if
this tax exemption were eliminated.
“The data presented in NAFCU’s tax study illustrates the importance of
the credit union business model within the U.S. economy,” said NAFCU
President and CEO Dan Berger. “It shows the necessary competitive edge
credit unions bring to the financial marketplace that benefits all
Americans, regardless of whether they obtain their financial services
from a credit union or a bank.”
The study, “Economic Benefits of the Credit Union Tax Exemption to
Consumers, Businesses and the U.S. Economy,” shows that repeal of the
credit union tax exemption would cost the federal government $15 billion
in lost tax revenue, $148 billion in gross domestic product and 1.5
million lost jobs over the next decade.
The study, using data from 2005 to 2013, shows:
A 50 percent reduction in the credit union market share would have
cost bank customers an estimated $7.6 billion to $16.2 billion per
year over the nine year period due to higher loan rates and lower
deposit rates in the absence of credit union competition.
Credit union members realized $51.5 billion in benefits over the
nine-year span of the study due to credit unions’ lower interest rates
on loans and higher rates on savings.
Bank customers realized an estimated $101.4 billion in benefits over
the same period as competition from credit unions forced banks to
offer consumers more favorable rates.
The total benefit to U.S. consumers from credit unions’ presence in
financial markets was $153 billion from 2005 to 2013 – or $17 billion
State by state, the study shows that the greatest consumer benefits
amounted to $17.9 billion in California, $15.6 billion in New York,
$10.9 billion in Texas, $7.3 billion in Florida, and $5.9 billion in
The study was co-authored by Robert Feinberg, professor of economics at
American University, and Douglas Meade, director of research at
Interindustry Economic Research Fund Inc.
For more information on the study and the credit union tax exemption, go
The National Association of Federal Credit Unions is the only national
organization that focuses exclusively on federal issues affecting credit
unions, representing its members before the federal government and the
National Association of Federal Credit Unions
of Public Relations
Source: National Association of Federal Credit Unions