Banks' Bid On CU Taxation Is Turned Back

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A bid by the banking lobby to convince the Democrats to repudiate Presidential nominee John Kerry's support for the credit union tax exemption faces long odds, according to observers at the Democratic National Convention.

"There was a chance the bankers were trying to get language in the party platform to try and get Bush and Kerry to repudiate their anti-tax letters," said CUNA Chief Lobbyist John McKechnie.

NAFCU CEO Fred Becker reported that Iowa Gov. Tom Vilsack, chairman of the Democratic Convention's Platform Committee, looked askance at the possibility. Vilsack, whose state just rebuffed a banker bid to tax CUs, told Becker during a luncheon at the convention that he thought the banks were so profitable it was unlikely they will get any support for the effort to tax credit unions.

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