Consumers Lose if Banks Win Credit Union Attacks

Indy Star cited CEI on credit unions.

Given the cooperative structure and mission of credit unions, the current types of taxes paid are appropriate, new taxes are not. The Competitive Enterprise Institute stated in a letter sent in May to a tax policy leader in Congress, “While credit unions are not taxed at the corporate level, their individual member-owners are fully taxed on the proceeds distributed by credit unions as they are taxed on interest (earnings).” Instead of trying to hinder competition from credit unions by lobbying for higher taxes on them, perhaps the banking industry should instead focus more on issues such as why it has paid more than $240 billion in penalties stemming from the financial crisis, and work to remedy those problems.

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