From the May-16, 2007 issue of Credit Union Times Magazine • Subscribe!
Bank 2004 Tax Deductions, Credits Reach Over $100B
WASHINGTON--The Government Accountability Office study released today found that banks wrote off more $100 billion off their taxes in 2004 and took tax credits of another $6 billion. The study, requested by now Senator Bernie Sanders (I-Vt.), showed that banks' tax deductions totaled $108 billion in 2004 and tax credits tacked on another $6 billion. "According to IRS data and officials, banks and thrifts use tax deductions, credits, and other provisions that are generally available to all corporations. Treasury considers only one tax provision--the deduction of excess bad debt reserves--a tax expenditure available exclusively to banks and thrifts and estimates revenue losses for this tax expenditure at $10 million in 2007," the study said. At the same time banks have fought to have credit unions taxed, which could bring in approximately $14 billion in potential revenue over 10 years. Additionally, banks just gained a legislative victory getting approximately $400 million more in tax deductions, according to CUNA, tucked into the supplemental spending bill.