Bankers Lobby On CU Taxation

BOSTON - (07/28/04) – Credit union lobbyists wereworking behind the scenes during the Democratic National Conventionthis week to preempt an attempt by the American Bankers Associationto get the Democrats to weaken their support of the credit uniontax exemption. The bankers were also working separately on theRepublicans to have the GOP reverse its stance on credit uniontaxation. Both parties’ presidential nominees, Sen. JohnKerry for the Democrats and President George W. Bush for theRepublicans, have expressed their strong support for credit unionsand the tax exemption in letters to CUNA and NAFCU. "The ABA istrying to get Bush and Kerry to repudiate their anti-tax letters,"John McKechnie, chief lobbyist for CUNA, told The Credit UnionJournal Tuesday. But the ABA has apparently been working behind thescenes to get language in the party platforms that would weakensupport for the tax exemption.