Bankers To Testify For CUTax
WASHINGTON - (11/02/05) -- The American Bankers Associationwill ask congressional tax-writers to move towards taxation oflarge 'bank-like' credit unions during hearings on the credit uniontax exemption Thursday. The ABA's witness, Jeff Plagge, presidentand CEO of First National Bank of Waverly (Iowa) and chairman ofthe ABA's Credit Union Coordinating Committee, is expected to urgethe House Ways and Means Committee to repeal the tax exemption forlarge, diversified credit unions, something the bankers have beenlobbying for several years. "We will say at the hearing Congressought to go and look at repeal for this new breed of creditunions," said Edward Yingling, president and CEO the banking tradeassociation. "We will be happy to work with the Ways and MeansCommittee on how to do that." Thursday's hearing will pit thebankers' representatives against the credit unions, with witnessesfrom the Internal Revenue Service, NCUA, Government AccountabilityOffice, also scheduled to testify at the hearing, the first ever tofocus specifically on the credit union tax exemption. Alsoscheduled to testify as a surprise witness: former NCUA ChairmanNorman D'Amours, on whether credit unions are performing theiroriginal mission of serving the underserved.