Bankers Take One Last Shot At CU Taxation

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Even though the head of the tax-writing House Ways and Means Committee made clear his intention not to tax credit unions, the bankers took one more shot in written comments submitted to the committee as part of the wrap-up to the Nov. 3 hearings on credit unions. America's Community Bankers, the trade association for savings and loans, called on the committee to start planning to repeal the tax exemption for large, diversified credit unions, specifically those credit unions that are over $25 million in assets and derive more than 75% of their income from other than traditional loans and deposit services.

The bankers' bid comes despite the fact that Committee Chairman Bill Thomas of California made it clear at the end of the credit union hearings he has no plans to repeal or limit the credit union tax exemption.

"I guess they weren't listening to what the Chairman said," said John McKechnie, chief lobbyist for CUNA, who added he doubts the bankers' latest proposal will go very far.

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