Written by Bernadette Clair, Regulatory Compliance Counsel
Yesterday, on the opening day of Congressional Caucus, NAFCU released a study on the “Economic Benefits of the Credit Union Tax Exemption to Consumers, Businesses and the U.S. Economy.” NAFCU commissioned the study to look at the benefits of the credit union federal tax exemption to consumers, businesses and the U.S. economy and to examine what would happen to the U.S. economy if the credit union federal income tax exemption is eliminated.
Key findings of the study:
- Eliminating the federal credit union tax exemption will reduce U.S. GDP by about $148 billion (in 2010 dollars) over the next decade ($14.8 billion per year); resulting in a loss of 150,000 jobs per year, or a total of 1.5 million jobs over the next decade.
- The total benefit to U.S. consumers from the presence of the federal tax exemption for credit unions is approximately $10 billion per year. From 2005-2011, the direct consumer benefit totaled $72.6 billion.
- $1.5 billion per year in federal income tax revenue will be lost due to the reduction in consumers’ personal income as a result of the anticipated reduction in the number of credit unions in the marketplace.
The authors of the study are Robert Feinberg Ph.D., professor of economics at American University, and Douglas Meade, Ph.D., director of research at Interindustry Economic Research Fund, Inc.
See NAFCU’s press release and NAFCU Today article for additional details. More information on the study and the credit union tax exemption can be found here, including a one-page summary of key findings as well as the full study.
CFPB Credit Union Advisory Council. The CFPB has announced the selection of 15 credit union representatives to its Credit Union Advisory Council. The council will provide feedback to the CFPB on its policy development, research, rulemaking and engagement functions. Those selected include NAFCU nominees John Buckley of Gerber FCU (Mich.), Mitch Klein of Police and Firemen FCU (Pa.), Camille Shillenn of Unified People’s CU (Wyo.) and David Wright of Services Center FCU (S.D.)
The CFPB also named its Community Bank Advisory Council members and members of the new Consumer Advisory Board. More information on the CFPB’s advisory groups is available here.