Same tired argument from the same tired voices. Einstein defined insanity as doing the same thing over and over and expecting a different result. Perhaps instead of insanity it's the arrogance or ignorance of the ABA in keeping with the same tired message. Community Banks have far more to fear from Mega-Banks than from credit unions.
Community banks don't fear credit unions, they object to the inequity of the tax exemption. The ad is silly however. ABA should use more intelligence in pursuit of closing the tax gap. The big, bank-like credit unions should pay tax. The little ones are still credit unions. The bank vs cu "fight" is as tiresome and ineffectual for both sides as congress is with everything. As for definition of insanity...NOTHING is more INSANE in American commerce than our (Cuna aka cu not accountable) MBL quarterly push.
There is no inequity when it is taxpayers that own the institution. I could see the merit of ABA's argument if wealth were concentrated with a relatively small number of owners, but that is simply not the case. The tax code set up far, far and away benefits the richest in this country and the lower income folks basically get a pass. I'm not getting down on the whole bogus social justice thing but truly high earners have completely legitmate tax loopholes that Joe the plumber does not. The middle class is getting disproportionately nailed from all sides. If middle class folks get a lower rate on their car loan or higher dividend rate on their savings and thus can contribute more to the economy by virtue of a few more dollars of disposable income it will eclipse any purported tax revenue benefit($2 billion? - a very suspect number btw)from taxing credit unions.
That would be great if it eere only true. You are most likely NOT employed at a credit union of any size. If you were what you would know is that most credit unions dont "serve the underserved". In fact thats a comical notion. Would bet many large ones have no focus on it.
To the contrary - I'm a President/CEO of a mid-sized low income charter. I would suggest that if your credit union is not walking the talk then stand up and do something about it.
Same tired argument from the same tired voices. Einstein defined insanity as doing the same thing over and over and expecting a different result. Perhaps instead of insanity it's the arrogance or ignorance of the ABA in keeping with the same tired message. Community Banks have far more to fear from Mega-Banks than from credit unions.
ReplyDeleteCommunity banks don't fear credit unions, they object to the inequity of the tax exemption.
DeleteThe ad is silly however.
ABA should use more intelligence in pursuit of closing the tax gap.
The big, bank-like credit unions should pay tax.
The little ones are still credit unions.
The bank vs cu "fight" is as tiresome and ineffectual for both sides as congress is with everything.
As for definition of insanity...NOTHING is more INSANE in American commerce than our (Cuna aka cu not accountable) MBL quarterly push.
There is no inequity when it is taxpayers that own the institution. I could see the merit of ABA's argument if wealth were concentrated with a relatively small number of owners, but that is simply not the case. The tax code set up far, far and away benefits the richest in this country and the lower income folks basically get a pass. I'm not getting down on the whole bogus social justice thing but truly high earners have completely legitmate tax loopholes that Joe the plumber does not. The middle class is getting disproportionately nailed from all sides. If middle class folks get a lower rate on their car loan or higher dividend rate on their savings and thus can contribute more to the economy by virtue of a few more dollars of disposable income it will eclipse any purported tax revenue benefit($2 billion? - a very suspect number btw)from taxing credit unions.
ReplyDeleteThat would be great if it eere only true.
ReplyDeleteYou are most likely NOT employed at a credit union of any size.
If you were what you would know is that most credit unions dont "serve the underserved".
In fact thats a comical notion.
Would bet many large ones have no focus on it.
To the contrary - I'm a President/CEO of a mid-sized low income charter. I would suggest that if your credit union is not walking the talk then stand up and do something about it.
DeleteIf it's such an advantage, why haven't ANY banks ever converted to a credit union?
ReplyDeleteThrivent converted in 2012. ESL did the same in the mid 1990s.
ReplyDeleteIn both cases, the institutions were mutuals.
This is cool!
ReplyDelete