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To: rabscuttle385

Limited membership - in theory, but it is so ridiculous in its application it is a farce. Membership is effectively wide open. I live in Alabama, so I can’t be a member of a CU in Oregon . . . man, that really cramps my style.

“Organizations do not pay taxes. Individuals pay taxes.”

My bank pays their taxes for them and charges them higher fees and rates to pay the taxes. When a customer compares a CU’s effectively subsidized rates to ours, it is a no brainer to them. FAce the facts, CU’s don’t have to price to cover a 35% income tax at the bank level. If you don’t think it has a major impact on the cost of providing services to your customer you are either igonorant of pricing models or delusional.

I am not advocating a socialist solution. Credit unions are the ones receiving the benefit of a government subsidy in the form a tax exemption. All I am asking for is equal tax treatment to business models that are essentially the same.

“Credit unions are a good thing! They almost always have fewer fees, lower interest rates on loans and higher interest rates on deposits. Credit unions have members, not customers.”

And it is the tax exemption that permits that to happen, to the detriment of the banking system that is the backbone of the American economy. You are obviously clueless and/ or brainwashed.


49 posted on 08/23/2007 8:14:56 PM PDT by RatRipper
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To: RatRipper
I live in Alabama, so I can’t be a member of a CU in Oregon . . . man, that really cramps my style.

That's an example. But what about the college student who lives in one state and attends school in another?

Different folks have different needs.

All I am asking for is equal tax treatment to business models that are essentially the same.

There are two ways to provide equal tax treatment: by taxing them all or by not taxing any of them. I prefer the latter.

Raising taxes is not the answer. Lowering taxes and equalizing regulation is the answer. The ultimate impact of tax increases is on the customer (bank) or the member (credit union).

You are obviously clueless and/ or brainwashed.

Nope.

But I do know that when my dad needed an auto loan, he was refused by the bank. It was the credit union that made it possible for him to buy a car. That is when we switched, and my family started out with small, community banks.

When the banks tripled his credit card interest rates (because they could), it was the credit union who stepped in with a lower interest rate.

You need to differentiate between the traditional credit unions with a true common bond field of membership and the quasi-banks running around masquerading as credit unions.

The latter are...the ones that make the rest of us look bad.

50 posted on 08/23/2007 8:32:09 PM PDT by rabscuttle385 (Sic Semper Tyrannis * U.Va. Engineering '09 * Friends Don't Let Friends Vote Democrat * Fred in 2008)
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