Pennsylvania Auditor General Jack Wagner sent a list of recommendations including taxing credit unions to Gov. Ed Rendell and the General Assembly to consider as alternatives to raising state income taxes to resolve the state’s budget impasse that has been in effect since July 1.
The Pennsylvania Credit Union Association’s (PCUA) knee jerk reaction was to write the Auditor General that removing the credit union tax exemption would seriously harm the credit union business model.
The PCUA is implicitly acknowledging that credit unions need their market distorting preferential tax treatment from the government to be competitive.
This may be the first time that writing a letter to an auditor general has been described as a "knee jerk reaction". Next they may "freak out" and invite him to a lunch meeting.
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