Banks Expose Lie of No Tax Increases to balance budgets in a recession.

Should we increase taxes on business right now? Jobs killer? Not in a recession? Ever?
Guess what, someone wants to make credit unions pay taxes on their profits, and it’s not the Democrats. Here’s a clue; who whined, received a taxpayer bailout and passed out gigantic bonuses to CEO’s? The banks want to increase taxes on credit unions, even in a recession.

Anybody still believe in “business uncertainty,” “no tax increase in a recession” or “tax increases kill jobs?” The Capital Times:

Amid the worst recession in a generation, the banking industry is again challenging the tax-exempt status of credit unions. Most credit unions have also managed to remain profitable despite the weak economy, a sore point for many today in the beleaguered banking industry.

Completely obliterating the excuse that state tax increases will destroy jobs and
discourage business, and shouldn’t be done to balance budgets:

"With local, state and federal governments all facing serious budgetary emergencies, the largest and most profit-driven credit unions can and should pay their fair share of the tax burden," says Kurt Bauer, president and CEO of the Wisconsin Bankers Association.

A new report from the President's Economic Recovery Advisory Board … included
ending the credit union exemption in a long list of recommendations on addressing the nation's budget deficit … the report notes "Eliminating this exemption … would clearly raise taxes on credit unions."

And while the banks try to raise taxes on other businesses, they’re reducing their tax load:

The growth of Subchapter S corporation arrangements — a way to organize bank ownership to reduce tax obligations … Subchapter S banks pass their earnings along to shareholders in the form of dividends, who are then taxed as individuals. Theoretically, this can reduce tax liabilities for the bank's owners, who can use other deductions to lower their exposure.

Sweet huh?

Wisconsin Credit Union League president Thompson says he finds it ironic that banks are pushing to tax credit unions while they continue to lobby for tax breaks of their own.