Facts on banks misleading
On Feb. 2, Patrick S. Jury, chief executive officer/president of Iowa Credit Union League, wrote a guest column in The Gazette, “Don’t tax credit union members.”
While I would expect him to defend not having to pay income taxes such as Iowa banks have to do, he uses misleading statements to make his case.
While factually correct, “60 percent of banks do not pay federal taxes because they choose to structure as Subchapter S corporations,” this is totally misleading. The federal taxes are paid by the stockholders so federal taxes are paid on the profits of the bank while the credit union pays no taxes on its profits.
It’s time credit unions pay their fair share of taxes on their earnings, just as Iowa banks do.
L. Sam HoldenManchester