ACB: Press Releases

Contact:	Robert Schmermund (202) 857-3104 Jim Eberle (202) 857-3145	Jim Eberle (202) 857-3145 (work) (703) 893-2593 (home) [email protected]	For Immediate Release February 4, 2004 #04-08
E-mail: [email protected]

ACB STATEMENT ON CREDIT UNION TAX EXEMPTION

Press Release Tools
	E-mail This Press Release
	Printer-Friendly Format

Statement by William W. Zuppe, chairman, America’s Community Bankers, on the exemption from federal taxation for credit unions:

America’s Community Bankers commends the Bush Administration for noting in its FY 2005 budget proposal the enormous and growing tax subsidy currently enjoyed by the credit union industry. The budget states that credit unions’ exemption from federal taxation is estimated to cost $1.43 billion in 2005, up from $1.36 billion in 2004 and $1.3 billion in 2003. The budget estimates that credit unions’ federal tax exemptions will cost a cumulative total of $7.88 billion between 2005 and 2009.

We are delighted that this important information is now before the American taxpayers so that they can see for themselves the free ride the credit unions are getting. The entire credit union industry combined, which made $5.6 billion in 2002, will not pay a dime in federal income taxes. The credit union industry receives an incredible subsidy while the nation heads into a deficit projected to be $364 billion in FY 2005.

ACB believes that bank-like credit unions should be subject to federal taxation. This $600 billion industry will pay zero dollars in federal income taxes in 2004. Isn’t it time they paid their fair share?

America’s Community Bankers is the national trade association committed to shaping the future of banking by being the innovative industry leader strengthening the competitive position of community banks. To learn more about ACB, visit www.AmericasCommunityBankers.com.

-30-