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Eliminate the credit union tax exemption

According to a statement from the ABA, "credit union tax exemption should be eliminated, particularly for credit unions who have strayed away from their mission of serving people of modest means." Many credit unions have no resemblance to the traditional credit unions Congress originally suggested would be worthy of preffered tax status.

ABA also stated the credit union tax expenditure does not continue to support the public policy of providing financial services to low- and moderate-income customers. They believe eliminating it would help decrease the U.S. debt and reduce distortions in the financial services industry.

Also, federal credit unions should be required to file Internal Revenue Service Form 990 in order to disclose executive salaries and promote improved corporate governance and stronger accountability to inform Congress, tax payers, and credit union members.

To read ABA's statement, click here.


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