Bankers Throw Parting Shot AtCUs

WASHINGTON - (11/21/05) -- Even though the head of thetax-writing House Ways and Means Committee made clear his intentionnot to tax credit unions, the bankers took one more shot in writtencomments submitted to the committee, as part of the wrap-up to theNov. 3 hearings into credit unions. America's Community Bankers,the trade association for savings and loans, called on thecommittee to start planning to repeal the tax exemption for largediversified credit unions, specifically those credit unions thatare over $25 million in assets and derive more than 75% of theirincome from other than traditional loans and deposit services. Thebankers' bid comes despite the fact that Committee Chairman BillThomas of California made it clear at the end of the credit unionhearings he has no plans to repeal or limit the credit union taxexemption. "I guess they weren't listening to what the Chairmansaid," said John McKechnie, chief lobbyist for CUNA, who added hedoubts the bankers' latest proposal for a credit union tax will govery far.