Tax Foundation Says Taxing CUs Among the Least Harmful Revenue Raing Options

by Keith Leggett

Taxing credit unions is among the least harmful revenue raising options, according to The Tax Foundation.

According to the December 5 Fiscal Fact, “[i]f lawmakers decide that new revenues must be part of any long-term effort to solve the budget crisis, they must choose the least harmful way of raising new revenues or else they risk compounding the crisis by slowing economic growth.”

The Tax Foundation wrote:

As a second-best option to asset sales, require Government Sponsored Enterprises (GSEs) and federally-owned businesses to pay federal income taxes.TVA, for example, has operating revenues of $11 billion and $47 billion in assets. It should pay federal income taxes. The tax benefit to credit unions has been estimated at $2 billion to $3 billion per year.”

Elsewhere in the report the Tax Foundation stated:

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