Credit Unions are now a $1 trillion industry, competition for
the same business and offering the same products as community
There are now 208 credit unions with more than $1 billion in
assets – a large increase from 1991, when only 11 credit unions
were this large.
A 2006 U.S. Government Accountability Office study found that
a bigger portion of credit union customers are upper-income
compared to bank customers.
Of the $8.6 billion credit union industry profits reported in
2012, three-fourths of those profits were concentrated in credit
unions with over $500 million in assets, representing less than 6
percent of credit unions.
Since 2001, credit unions have increased the deficit by not
paying an estimated $20.5 billion in federal income taxes.
The credit union tax exemption is expected to be the 17th
largest corporate tax expenditure by conservative estimates found
in the Office of Management and Budget’s Analytical Perspectives.
An individual tax payer will pay more in taxes each year than
all credit unions combined.
Decades ago, mutual insurance companies and mutual savings
banks, with ownership structures similar to credit unions, lost
their tax exemptions, specifically in the 1940s and 50s and
continue to operate, and thrive, while paying taxes.
Canada and Australia, in 1972 and 1994 respectively, repealed
their credit union industries’ tax exemptions.