Americans for Tax Reform last week likened the tax exemption of credit unions to the tax treatment of pass-through businesses, such as partnerships and S-corporations.
Ryan Ellis, who wrote the piece, stated that the only difference is the incidence of the tax.
Unfortunately, Mr. Ellis does not seem to understand the difference in the tax treatment of credit unions versus pass-through businesses.
The owners of partnerships and S-corporations are responsible for paying taxes on the earnings (profits) of the business.
In contrast, credit unions do not pay taxes at the corporate level on their retained earnings (profits), nor do they have an outstanding tax liability that is passed through to their members.
Somebody dare writes the truth without the bankers' spin and you complain.
ReplyDeleteSometimes the ABA/ICBA cannot pay for all reports dealing with credit union taxation.
I love credit unions as much as you, but collectively we are seriously confused about this issue, and we're wrong. It doesn't let us off of the hook that we strongly believe what we're saying. Come on folks - do a little research.
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