In his remarks to CUNA's GAC, NCUA Chairman Dennis Dollar acknowledged the discussion that always dominates the meeting, the status of the credit union tax exemption. One point often raised is what would happen to credit unions' net worth should the tax exemption be lost. To answer that question, Dollar provided an analysis of the industry's overall condition with the tax exemption and if it had had to pay the 35% corporate income tax for the past five years.
CU Net Worth With Tax Exemption
Year Industry Avg. Capital Total Reserves
2003 10.72% $65 Billion
CU Net Worth After 10 Years At 35% Rate
Year Industry Avg. Capital Total Reserves
2003 8.42% $51 Billion
