Wisconsin league talks tax exemption on radio
MADISON, Wis. (11/3/05)--Credit unions had an hour to talk about the credit union difference and promote the not-for-profit, tax-exempt status during a Wednesday morning radio show on Wisconsin Public Radio (WPR).
Brett Thompson, president/CEO, Wisconsin Credit Union League, was interviewed by Joy Cardin for her program, "Conversations with Joy Cardin."
WPR contacted the league after being tipped to the hearing by one of its listeners, according to Chris Olson, league director of communications.
Thompson presented the key characteristics of credit unions that were recognized by Congress in granting the tax-exempt status: member-owned governance, existing solely to meet needs of member, member benefits and the values of the credit union movement.
Making not-for-profit credit unions pay income tax would have a two-fold impact, Thompson said. Members would see higher costs on services and less favorable rates on loans and savings. Consumers and members would lose a choice in the financial services market.
More than two million Wisconsin residents are members of credit unions, said Thompson.
During the interview, Cardin used the "walk like a duck" description bandied about by bankers.
Thompson mentioned that national budget deficits are a reason why the focus has turned to examining credit unions for taxation.
"The hearing gives us a wonderful opportunity to tell what we think is a great story about credit unions," Thompson said.
Consumers have seen the benefits of having credit unions in the market with other financial institutions bettering their rates and offering no- or low-cost services.
"We consider that to be a success of the credit union movement and exactly why credit unions are necessary to keep things on a more competitive level and better serve Wisconsin consumers," he said.
A question from a caller also gave Thompson the opportunity to clarify that credit unions are exempt only from state and federal income taxes--they pay property, real estate and related employment taxes.
The program will feature Kurt Bauer, president of the Wisconsin Bankers Association, on this morning's edition.
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