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Nov 04 - Aggresive Growth of State-Subsidized Credit Unions Is Steadily Eroding Utah's Tax Base.
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Did you know...
That you pay more income taxes than Utah's billion-dollar credit unions? The average Utah family pays $5,992 a year but Utah's mega credit unions pay nothing.
The tax exemption for big credit unions hurts...
- You. Because large credit unions don't pay income and sales tax, other taxpayers must make up the difference. Even low-income taxpayers share the burden of subsidizing billion-dollar credit unions.
- Your neighborhood school. Because 100% of all Utah income tax goes to education, the income tax exemption for large credit unions directly costs our schools. If Utah's big credit unions paid income tax, Utah schools would have several million dollars more a year to educate our children.
The Council for Sound Tax Policy (CSTP) is an advocacy organization that supports a broad tax base and a fairly distributed tax burden.
We urge elected officials to do what's best for the majority of taxpayers despite opposition from well-funded interests who profit from unjustifiable tax exemptions.
CSTP's Tax Exemption Accountability Initiative
CSTP appreciates the pioneering role of credit unions in making credit available to low-income Americans during the difficult economic times of the last century.
In recent decades, however, some credit unions have taken inappropriate advantage of their exemption from income and sales taxes to grow extremely large and wealthy. They have gone far beyond the original intent of the exemption and are taking economic activity off the tax rolls each year.
Increasing erosion of the tax base should be of concern to taxpayers, policymakers and everyone who is interested in the health of state and federal revenue sources.
Your voice can make a difference: If you would like to join with other taxpayers in urging elected officials to ensure that large credit unions pay regular income taxes on profits they don't return to credit union members, please subscribe or endorse us here.
