OTTAWA, Canada (12/31/13)--A Canadian Member of Parliament has written an op-ed opposing a budgetary proposal to eliminate the small business tax rate for Canada's credit unions.
The Monday editorial, "Credit unions not banks and should not be taxed like them," in the Cowichan News Leader was written by Jean Crowder, a New Democrat Party MP for Nanaimo-Cowichan, a district in British Columbia.
"I'm a proud member of many different cooperatives and I bank at a credit union," she wrote. "That's why I was so dismayed when the Conservatives announced they would eliminate the small business tax rate for credit unions in the last federal budget," she said, adding that credit unions have a different mandate than big banks.
An amendment in the budget would change the definition of which income is eligible for a rate reduction but only for credit unions, which Crowder said would double the federal tax burden on Canadian credit unions over the next five years. "That doesn't seem like a level playing field to me," said her article.
She noted credit unions have a proposal before parliamentarians, called the Credit Union Investment Tax Credit, which would provide a "fair and neutral financial system." It would focus on retained earnings, not shares, under certain conditions.
"Credit unions are important resources for people in small markets where banks can't be bothered opening a branch," said Crowder. "Their strong focus on community economic development is an important driver for the sustainability of businesses.
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