Tax Threat Lessened But Not Gone For Good
With the defeat last year of AB 1226, a banker-inspired bill that called for a study on imposing a "fee" on California's largest credit unions, the tax threat in California has lessened somewhat, but attempts by the banking industry to tax credit unions are likely to recur. The state is facing a $14-billion budget shortfall for 2004-05. Just as they did in California and other states last year, the banking industry may try to leverage the state's fiscal problems into an excuse for calling for taxes on credit unions. If they do, we will meet their challenge with the same grassroots campaign-credit union leaders phoning, faxing, mailing and e-mailing their legislators and if necessary testifying before legislative committees-that exposed AB 1226 as an attempt to harm credit unions, and led to its defeat.