Dedicated to Deposits: Deals, Data, and Discussion
Featured Savings Rates
Featured Accounts

Banks Pushing For Repeal Of Credit Unions' Federal Tax Exemption

Saturday, July 6, 2013 - 9:34 AM
Credit unions have been snatching customers from banks amid consumer frustration over rising fees and outrage over Wall Street's role in the financial crisis. Now banks are fighting back by trying to take away something vital to credit unions — their federal tax exemption.

Banks pushing for repeal of credit unions' federal tax exemption - latimes.com
7
ShorebreakShorebreak2,700 posts since
Apr 6, 2010
Rep Points: 14,636
1. Saturday, July 6, 2013 - 10:59 PM
One of the credit unions I belong to asked me to sign a petition to preserve the tax exemption. I was happy to do it. I am sure the banks would like nothing more than to eliminate the competition from credit unions. I hope Congress can resist the bank lobby and their campaign cash.
3
loulou554 posts since
Aug 3, 2010
Rep Points: 3,437
2. Saturday, July 6, 2013 - 11:10 PM
We have one bank-cheerleading eponymous poster at DA who rails against the unfair advantage the credit unions have over the banks but is not hesitant to take advantage of the good credit union deals advertised on this site. Recently, he purchased the two year 2% CD at AllianceUSA. Seems hypocritical to me.
3
loulou554 posts since
Aug 3, 2010
Rep Points: 3,437
3. Sunday, July 7, 2013 - 4:55 PM
Here we have the banks complaining IN A VACUUM that the credit unions have an unfair advantage over them and that that isolated benefit shoud be taken away. Perhaps the banks should be just a bit more honest and argue that both banks and credit unions should be under all the same rules, which would serve to take away the banks' benefits, including their far fewer restrictions, such as on to whom they can lend. I believe credit unions must do most of their leending to their members. The banks are not so drastically restricted, and that gives them a big advantage over the credit unions, something they carefully structured their argument to avoid mentioning. The banks can lend to pretty much anyone, and even do major commericial lending. 

Funny how this dispute has beeen so controlled by the banks that no one has pointed out how deceptively structured the conversation has been, how controlled by the banks it has been, instead have stayed within the confines of the debate as the banks have defined it. 

Do not let the banks control the argument -- call them on their deception, and demand that they lose all the benefits they have that the credit unions do not have. That is, put it in an honest context, not the deceptive context the banks have created. 
3
me1004me1004374 posts since
Jan 16, 2010
Rep Points: 2,604
Reply