Congressional Budget Office proposes taxing larger credit unions

Northwestern Financial Review, Mar 15-Mar 31, 2007

The Congressional Budget Office has proposed taxing credit unions with more than $10 million in assets as one of many ways to strengthen the federal budget. Option 27 on page 294 of the 374-page report says: "Large credit unions, like taxable thrift institutions, now serve the general public and provide many of the services offered by savings and loans, and mutual savings banks," CBO estimates the change in tax treatment would increase federal tax revenues by $1.2 billion in 2008 and by a total of $9.0 billion over five years.

"Larger credit unions have actively chosen to operate as profit-seeking institutions," commented Kurt Bauer, president/CEO of the Wisconsin Bankers Association. "The CBO report suggests that these institutions be held accountable for their actions. Operating like a for-profit business means being taxed like one."