End tax subsidies for credit unions

It is interesting that the articles in the Aug. 14 Business 380 insert about the credit unions did not include one word about the tax subsidies these credit unions enjoy. Not one word informing the taxpaying public of the fact that these businesses do not pay income tax.

In these tough economic times, when the state and federal government are looking at subsidies they provide for all Americans, I believe it is time the tax subsidies to credit unions be revoked. They are self-admitted large financial institutions that have no common bond as was originally intended to gain the tax subsidy. The subsidy to the credit unions creates an unfair competitive edge for them.

My community bank pays at least 33 percent of all of our earnings to the IRS and state in the form of income taxes. If we did not have to pay taxes, we could certainly lower rates on loans and pay more on deposits.

Community banks are the backbone of small communities in Iowa and around the United States. We ask that the reporting be fair, balanced, accurate and informative.

Dale J. Torpey

Chairman,

Federation Bank,

Washington

President,

Community

Bankers of Iowa