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 March 2, 2004 #04-11
E-mail: [email protected]

ACB STATEMENT ON EXAMINATION OF CREDIT UNION TAX EXEMPTION

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Statement by William W. Zuppe, chairman, America’s Community Bankers, on the announcement today by House Ways and Means Committee Chairman Bill Thomas (R-Calif.) that he intends to examine the tax-exemption enjoyed by various organizations:

America’s Community Bankers applauds House Ways and Means Chairman Bill Thomas for his courageous actions in calling for the examination of tax-exempt organizations, including credit unions. ACB strongly urges Chairman Thomas to hold formal hearings to shine a congressional spotlight on this $600 billion industry’s tax-exempt status.

Larger credit unions are rapidly expanding into business and commercial lending, while paying no federal taxes. Zip. . .nada. . .nothing. We agree with Chairman Thomas that one must look at the “societal good” provided by credit unions, and determine whether today’s credit union industry has strayed from the original mission for which it was given preferential tax treatment — to serve customers of modest means. The question is, “Are tax-exempt credit unions really providing more societal good than tax paying community banks? The answer is clearly, No.”

The estimated cumulative cost to the U.S. Treasury through 2009 is $7.9 billion, according to the administration’s fiscal year 2005 budget. We look forward to working with Chairman Thomas and the committee staff to examine this issue. Credit unions that want to play like banks, should pay like banks.

Click here to read ACB letter to Treasury Secretary John Snow.

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.

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