Letter: Credit unions protected for votes

Scott Ramspott’s Dec. 21 letter “Raising taxes on credit unions a step backward” is in error. The original charters of credit unions specified that they serve their member owners. They were at that time for a membership of common employees who believed they were not being served by available banks. They provided a service then.

When they decided to expand the meaning of their membership to include all of society, any warm bodied moneyed human, they became banks. They do not pay taxes because they are an enormous voting block.

Years ago when Rep. Jim Leach was chairman of the House Banking Committee he was approached and admitted the request for taxing credit unions was not unreasonable. He did not allow it to come before his committee. A spokesman for him called and said “he could not consider the request for fear of losing the election.” Which translates into: “We elected representatives will not do what is fair and right but will do what we can for reelection.”

The U.S. Treasury loses hundreds of millions in tax dollars annually because our elected officials are protecting credit unions for votes.

Henry Royer

Cedar Rapids


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