Big Banks Lobbying to Tax Credit Unions, Claim Unfair Competition

Credit Unions are owned by it's members, are non-profit, and are currently tax exempt because of this. With the crash of 2008 many people decided to stop doing business with the banks in favor of credit unions. This appears to be the big banks way of protecting their profits by squashing the competition. If passed it could drive many smaller credit unions out of business.


dailycaller.com...

freepatriot.org...

As Congress debates an overhaul of the tax code, it is considering implementing new taxes that will have a dramatic impact on the middle class and effectively raise taxes on about 96 million people. This blanket-style review of the tax code would end the tax-exempt status for nonprofit credit unions, which would jeopardize tens of thousands of jobs and stifle economic growth. New taxes on credit unions will also eliminate needed competition between banks and credit unions. The result: higher fees and higher loan and mortgage rates for many in the middle class, and for small businesses.
...
But banks have private investors and stockholders, and are taxed on their profits. Credit unions make no profits and return their surplus back to their members through lower interest rates on loans and higher rates on deposits – so taxes are paid at the individual member level. According to an Americans for Tax Reform review of current tax policy, “the net effect for federal coffers is pretty close to a wash.”



Read more: dailycaller.com...

They don't like it because people get treated with respect and fairness at credit unions.

It make the big banks look bad.

Unfair competition just now happening? Are you kidding me?? You don't say. I gotta tell ya, I never, in a million years, would have thunk this be the next step in this seemingly out-of-the-blue weave of such financial trends considering we have never once been exposed to the unfathomable, arbitrary avariciousness of cronyism before!
How dare they, How dare all of they.

reply to post by unb3k44n7


Has anyone else been getting multiple mailings for "pre-approved" credit card solicitations from the major banks these last few weeks?

I get at least one a day -

Maybe this is a good thing, they seem to be scared. Maybe they thought people would put their new unafforable obozocare premiums on credit cards.

How I would love to see Everyone stop paying their credit cards bills and mortgages to the big banks for 6 months - we could destroy them - but it would have to be everyone.

They should be outraged!

Banks would never do anything unfair. Ever.

2 words...

The Mattress..

Really.. works wonders man... i haven't used a bank in around 15 yrs..

I think its about time to run these big banks out of our country on a rail...
Like any of them are paying any taxes themselves.

reply to post by defcon5


I'm wondering - is this why those dem and repub idiots in washington d.c. are so hell-bent on amnesty for all the illegal immigrants? A majority of US citizens realize the theft the big banks and politicians orchestrated , so they need a bunch of stupid, naive immigrants to "buy" into their ponzi/greed scheme of neverending debt?

Those f&(*ers.

I'm surprised this thread has not received more attention.

Credits unions are non-profit, all profits are given back to it's members who can be taxed for that income. Credit unions offer lower interest loans and do not their members monthly fees or other hidden fees just for the privilege of having an account.

It is a huge deal if this become law. Credit unions will have to charge higher interest rates on loans and will not be able to offer any kind of reasonable interest bearing accounts. Smaller credit unions will likely go out business.

It is a rigged system when the big banks with their lobbying power can bully the smaller guys who have a better business plan because of that lobbying power. Apparently the banks have been pushing for to tax credit unions for quite sometime yet yesterday was the first I heard of it. The one MSM article I found made it sound like the credit unions were the bad guys because they do not pay the same taxes the for profit banks pay.

The big banks did a poor job of doing business and failed only to be bailed out by tax payers. That was not enough, now they are trying to tax their competitors out of business.

The credit union tax my pass into law because the bill and the push from the big banks is being ignored by MSM and we can not voice our opposition on a bill that no one knows about.

Whether or not these a-holes succeed at passing a law to tax credit unions, I'll continue to do business with my credit union and only my credit union... even if rates have to go up because of it.

It's my way of flipping the bird to the big banks.

They can whine jumping up and down on their soapboxes all they want. There's a reason why more and more people are taking their business to credit unions, and it's not just because of cheaper rates.

CranialSponge
Whether or not these a-holes succeed at passing a law to tax credit unions, I'll continue to do business with my credit union and only my credit union... even if rates have to go up because of it.

It's my way of flipping the bird to the big banks.

They can whine jumping up and down on their soapboxes all they want. There's a reason why more and more people are taking their business to credit unions, and it's not just because of cheaper rates.

Agreed.

Support for the Big Banks is supporting the Head of the Beast that is responsible for Crony Capitalism in this country.
It is not the credit unions that are at the top of the list when it comes to lobbying politicians and it certainly is not the credit unions that are the major recipients of Quantitative Easing.