Top Government Officials Back Tax-Exemption at GAC

WASHINGTON-Legislator after legislator took the podium during CUNA’s GAC in support of credit unions’ tax-exemption. They were met with standing ovations. *Senate Majority Leader Bill Frist (R-Tenn.) told credit unions we are an `over-taxed’ nation. “We, I, on behalf of our legislative body, absolutely support the current [tax] exemption for credit unions today. That tax-exemption will be preserved.” *House Financial Services Committee Chairman Mike Oxley (R-Ohio) stated, “There is no support for changing that tax-exempt status.” *Congressman Mike Michaud (D-Maine) said of a tax on credit unions: “It would only hurt the families that need affordable financial services.” *Congressman Butch Otter (R-Idaho), a bank director, explained how credit unions can flourish in small towns, then the banks try to muscle in to try and make a buck and cry out `unfair advantage.’ “The advantage should go to the ones that cared when nobody else would,” he stated. *Congresswoman Maxine Waters (D-Calif.) said of credit unions, “They serve where many banks have not ventured to serve.Taxing credit unions is bad economics.” *Congressman Joe Knollenberg (R-Mich.) noted the high unemployment rate in Michigan and that every dollar that comes back to his constituent counts. “I am very supportive of maintaining your tax-exempt status,” he said.