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Forbes Op-Ed: Credit Unions, Taxes, and Dishonest Bankers
Friday, May 29, 2015 6:35 AM

A contributor on penned an op-ed Thursday that chides bankers for continuing their attacks on the credit union federal tax-exemption. In his piece, “Credit unions, taxes, and dishonest bankers,” Ryan Ellis questions the banking trades, including the Florida Bankers Association and the American Bankers Association, for continuing to obscure the facts on what credit unions are and the reason for their exemption.

Ellis cited Alex Sanchez, CEO of the Florida Bankers’ Association, who accused credit unions of being unpatriotic by not paying taxes. And he notes, "Frank Keating, the president and CEO of the American Bankers Association, said that if dropping non-profit status was good for the National Football League, it should be good for credit unions."

Ellis went on to explain succinctly what credit unions are and how they do pay taxes; and he pointed out the structural differences on taxes at the entity level, which he says banks don't take into account. He goes on to address the bankers' complaints.

"According to the Congressional Budget Office," the op-ed reads, "taxing credit unions at the entity level would be a tax increase of about $2 billion per year—chump change in Washington, but enough to alter the balance of power in the financial industry."

He says banks aren't interested in tax reform. "They are interested in higher taxes on their competitors in order to gain a market advantage."

You can read the op-ed in its entirety here.