Taxes on 96 Million Americans
The Daily Caller
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 non-profit 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.
The proposal to place new taxes on credit unions is being pushed on Capitol Hill by the banking industry's K Street lobbyists, who tell politicians that credit unions' non-profit tax status gives them an unfair advantage, while at the same time letting credit unions off the hook in the effort to balance the budget.
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."
The Congressional Joint Committee on Taxation estimates the tax exemption for credit unions amounted to $0.5 billion last year. But $0.5 billion is only a tiny fraction of the annual deficit. And worse, Steve Pociask of the American Consumer Institute writes, "...eliminating the non-profit status of credit unions would cost consumers $16 for every $1 of taxes saved. That would be a really bad deal for consumers."
As for the supposed unfair advantage claimed by Big Banking's lobbyists, a look at the market share of credit unions does not bear their argument out: Banks hold 93 percent of financial assets in the United States, while credit unions hold roughly six percent.
READ FULL SOURCE ARTICLE: 09/26/2013
Editor's Note: And let's remember that the banking industry has recorded record profits these past two years...not to mention they continuously receive "bailouts" as being classified by their political beneficiaries as "too big to fail."
The BasicsProject.org informational and educational pamphlet series is now available for Kindle and iPad. Click here to find out more...
The New Media Journal and BasicsProject.org are not funded by outside sources. We exist exclusively on tax deductible donations from our readers and contributors.
Please make a tax deductible donation today.