Congress granted credit unions their tax status more than 90 years ago, and year after year it consistently proves itself as one of the U.S. government’s best investments.
While credit unions pay a long list of taxes, they do not pay the federal income tax on profits. Why? Because instead of paying profits to investors, credit unions are cooperative financial institutions, owned by their members and as a result return earnings back to the members they serve in the form of reduced fees, lower interest rates on loans, higher savings rates, and institutional improvements.
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