The content is provided for educational purposes only, with the understanding that neither the authors, contributors, nor the publishers of this site are engaged in rendering legal, accounting or other expert or professional services. If legal or other expert assistance is required, the services of a competent professional should be sought.
Comments appearing in response to articles appearing on this site do not necessarily reflect the views of the ABA. ABA makes no representations regarding the truth or accuracy of commentary or opinions that may be posted in response to the articles that appear on this website.
The inclusion herein of any link to a website, either in the text of an article or in a comment, does not denote any approval, sponsorship, or endorsement by the ABA, and ABA is not responsible for the content or opinions expressed on those linked websites or related commentary. This content is not licensed to third parties sites and is not affiliated with any third party site. Any reference to the author or this content on any third party site on the Internet is not authorized by the ABA.
It is the policy of the American Bankers Association to comply fully with all antitrust laws. Certain discussions should be considered off-limits, including those that contain competitively sensitive data such as price and cost information, or statements that could be construed as reflecting an attempt or desire to control or influence a particular market or markets. Future pricing or other prospective competitive information should never be shared.
Congratulations to Lake Michigan for their excellent financial performance! Keith, credit unions have owned used car lots for decades. I used to have to audit them. I think it's a terrible investment, but if they can afford it, then why not? "People of modest means" need cars to drive to work and take their kids to school too, you know.
ReplyDeleteThats all fine.
DeleteTax them
The used car lot CUSO is a taxable entity.
DeleteYes the cusp is a taxable entity which credit unions downstream expenses to so that the cuso pays less or no taxes.
DeleteThese large credit unions are no different than banks and attempt/ or achieve business with the same consumers the banks do.
The large credit unions should get the same regulations on capital, unlimited access to customers, the same business lending potential as banks and access to equity capital...and they should pay federal tax on income.
No brainier.
Bigger things to worry about.
Just do it.
Too much time money and effort wasted on trade association agenda.
They probably downstream expenses just like any company to minimize taxes. Remember what the U.S. Supreme Court opined on the Citizens United case: Corporations are people too.
DeleteI wonder where you draw the line on which credit unions should be taxed. Our C.U. is considered large but runs like a classic credit unions--restricted FOM, no CUSOs, just trying to do what's right for the membership. Should we be taxed solely because we're large in someone's eyes?
Just love cu logic. "They downstream like every other company..." Ceptin' heres the part you'ns always leave out..."cept we dont pay taxes".
DeleteCant blame us. Its worked so far. We look just like community banks but dont pay taxes.
Lets ride this train til congress wakes up!
Never.