WCUL Questions Bank Study

PEWAUKEE, WIS. - The Wisconsin Credit Union League is questioning a study commissioned by the Wisconsin Bankers Association (WBA) over credit union mortgage lending and branches. The WBA is using the study as a basis to call for an end to the credit union tax exemption. "Why do banks insist on increasing the tax burden of Wisconsin families," asked WCUL CEO Brett Thompson. "That is exactly what would happen if a major recommendation of the study-taxing large credit unions-would be implemented. A tax on credit unions is a tax on their members-working families throughout Wisconsin."

Saying it needed more time to examine the study, the WCUL nevertheless called the WBA-underwritten report flawed and perlexing. The league noted, for instance, that the study incorrectly states credit unions were founded to serve only low-income people and also inflates the income to the government should credit unions be taxed, a figure more than offset by the benefits to Wisconsin CU members, the league said.

"What the study is really all about is eliminating the competition," said Thompson. "Why else would the study suggest that one way of addressing the fact that large credit unions pay no corporate income tax would be for the large credit unions to convert to banks? "