About | HeinOnline Law Journal Library | HeinOnline Law Journal Library | HeinOnline
LOG IN
LOG IN

1 Erica York, Reviewing Business Tax Expenditures: Credit Union Tax Exemption 1 (2021)

handle is hein.taxfoundation/rwigbstx0001 and id is 1 raw text is: Reviewing Business Tax Expenditures: Credit Union Tax Exemption FISCAL FACT Erica York Economist No. 779 Sept. 2021 Key Findings • Policymakers should carefully analyze tax expenditures before categorizing one as a loophole-some tax expenditures are important structural elements of the tax code while others are unsound. • Generally, if a provision is broadly available and helps to eliminate the double taxation of saving, or broadly contributes to a consumption tax base, it is sound and should remain in the tax code. • On the other hand, if a provision is narrow and confers special treatment to specific industries or companies, or attempts to engineer decision-making through the tax code, it is generally unsound. • The exemption for credit union income is a worthy case study. The credit union exemption is a narrow benefit provided to a single subindustry that results in an inefficient allocation of resources and a tax advantage over banks that offer similar financial services. • Eliminating the credit union exemption could increase federal revenue with minimal harm to long-term economic output because much of the subsidy results in economic inefficiency. • Similarly, other business tax expenditures unrelated to cost recovery, deferral, The Tax Foundation is the nation's or international tax rules could be eliminated and the resulting revenue used leaig ndepn nene policyimrv coprtfone research organizationSince1937 to further improve the corporate tax base or pay for newspending. our research, analysis, and experts have informed smarter tax policy at the federal, state, and global levels. We are a 501(c)(3) nonprofit organization. ©2021 Tax Foundation Distributed under Creative Commons CC-BY-NC 4.0 Editor, Rachel Shuster Designer, Dan Carvajal Tax Foundation 1325 G Street, NW, Suite 950 Washington, DC 20005 202.464.6200 taxfoundation.org

What Is HeinOnline?

HeinOnline is a subscription-based resource containing thousands of academic and legal journals from inception; complete coverage of government documents such as U.S. Statutes at Large, U.S. Code, Federal Register, Code of Federal Regulations, U.S. Reports, and much more. Documents are image-based, fully searchable PDFs with the authority of print combined with the accessibility of a user-friendly and powerful database. For more information, request a quote or trial for your organization below.



Contact us for annual subscription options:

Contact Us

Already a HeinOnline Subscriber?

Log In

profiles profiles most