Wednesday, July 31, 2013
Who costs the tax payer more money?
Rob Kimmett, Sr. VP Marketing, New England Credit Union Services, LLC
Need a fresh sound bite for the pesky banker who just can’t get over the fact that credit unions are tax exempt not-for-profit cooperatives? There’s a quiver full of possibilities. I’m kind of fond of “Why don’t you convert to a credit union charter then?” However, this one that is hot off the wire from Bloomberg may top even that golden oldie: “All told, the financial advantages for the six biggest banks since the start of 2009 amounted to $102 billion, according to data compiled by Bloomberg.”
Turns out we are pikers!
According to a report issued by the Government Accounting Office (GAO) in April the credit union tax exemption was worth $1.1 Billion (and that is for 7000 institutions). Of course this figure fails to incorporate any elaborate tax avoidance strategies (the type that the for profit banks are so fond of).
And not only that, we convert all of the advantages we get into savings or earnings for our members who go out into the real economy and spend money on tangible goods and services. I’m sure the mega-bankers can’t understand why we don’t turn the pittance that we manage to save into bonuses and big pay checks for directors.
That ought to send them away sputtering.