You have reached your limit of free articles this month.

Enjoy unlimited access to myPalmBeachPost.com

Starting at just 99¢ for 8 weeks.

GREAT REASONS TO SUBSCRIBE TODAY!

  • IN-DEPTH REPORTING
  • INTERACTIVE STORYTELLING
  • NEW TOPICS & COVERAGE
  • ePAPER
X

You have read of premium articles.

Get unlimited access to all of our breaking news, in-depth coverage and bonus content- exclusively for subscribers. Starting at just 99¢ for 8 weeks

X

Welcome to myPalmBeachPost.com

This subscriber-only site gives you exclusive access to breaking news, in-depth coverage, exclusive interactives and bonus content.

You can read free articles of your choice a month that are only available on myPalmBeachPost.com.

POINT OF VIEW Credit unions twist truth in attempt to expand powers


I found the opinion piece by Patrick LaPine, president of the League of Southeastern Credit Unions and Affiliates, — published in The Palm Beach Post — “Point of View: Lawmakers can give local government depository choice,” March 10 — misleading and self-serving.

The government gave credit unions their tax-free status because they were to be nonprofits that had a limited customer base, laying the groundwork for an uneven playing field. Now, they are back asking the government to do even more by letting them once again expand their powers by accepting public deposits, such as those from local governments, school boards, universities and colleges.

It is the height of irony that the credit unions are asking the government to let them accept public deposits, which are the same tax revenues that they do not contribute. Why should the government create a more unlevel playing field by letting credit unions hold these tax revenues?

Most banks pay as much as 40 percent in state and federal corporate income taxes; credit unions pay nothing. LaPine misrepresented the facts, highlighting that credit unions pay typical employer taxes while failing to mention that, unlike any business in America, credit unions pay absolutely nothing in state and federal corporate income taxes. Florida small businesses pay more in those corporate taxes and, in addition, pay sales, income and intangible taxes — none of which credit unions pay.

LaPine continues his fallacious argument by stating that Chapter S chartered community banks, like credit unions, are exempt from paying corporate income taxes. The truth is that for Chapter S, a benefit allowed for many small businesses, the owners pay the state and federal taxes while credit unions pay nothing.

The reality is that credit unions are looking to further expand their powers even though their charters clearly state they are designed to serve individuals with a common bond and of modest means.

There is room for both credit unions and banks to compete and thrive, but we should do so on a level and fair playing field. Why don’t large credit unions pay taxes to support the needs of our state and nation, like the war on terror, defense needs, the needs of our children and seniors, our transportation needs, and all the other needs we have? Banks do.

Until credit unions pay their fair share of taxes, the government should not pick winners and losers in the economy and credit unions shouldn’t be able to accept taxpayers’ public deposits.

ALEX SANCHEZ, TALLAHASSEE

Editor’s note: Alex Sanchez is president and CEO of the Florida Bankers Association.



Reader Comments ...


Next Up in Opinion

Letters Will country’s ideological divide drive us to second civil war?

Ideological divide driving us to war? With the end of an extremely contentious presidential election, it is clear that our country is more divided than ever. Sadly, I don’t see any way to heal this rift. Our country is divided by deep-seated ideological beliefs. Just before the Civil War, our country was also divided along ideological lines....
cartoon
cartoon

CARTOON VIEW MIKE LUCKOVICH
POINT OF VIEW Negative signals from Legislature suppress job numbers

Headlines across Florida recently highlighted the strong private-sector jobs created in January. It’s true, January was a banner month for jobs with 51,000 new jobs added in Florida. Unfortunately, that’s where the good news turns to concern. That’s because brand-new U.S. labor statistics show Florida created fewer jobs in 2016 than...
We’re against emotionalism, except when we’re not

Conservatives have rightly taken pride in Neil Gorsuch’s calm and cerebral performance at his Senate confirmation hearings. Many commentators, along with Republican senators, have mocked Democrats for presuming to evaluate Gorsuch based on the outcomes of his cases. Did he “side with the little guy” or with big corporations? The right...
Editorial: Glades’ worries deserve answers but shouldn’t kill reservoir
Editorial: Glades’ worries deserve answers but shouldn’t kill reservoir

State Senate President Joe Negron walked into a lion’s den last weekend at Pahokee High School. A spillover crowd wanted their district’s Republican senator to see how strongly they oppose a reservoir south of Lake Okeechobee, and how fearful they are that agricultural land would go out of production, taking their jobs and sinking their...
More Stories