Two credit union leaders recently offered a rebuttal to a Wall Street Journal letter to the editor with letters of their own on the credit union tax status.
Also, in Iowa, one credit union member offered his own response to a guest column on the same topic.
In The Wall Street Journal (subscription required), Evans M. Harrell, board member at LGE Community CU, Marrietta, Ga., pointed out the structural difference between credit unions and banks.
“Both (credit unions and banks) are highly regulated, but credit unions more so, especially when it comes to raising capital, where banks have many more choices,” Harrell wrote. Any distribution to the members is taxed to the individual member-owner. Distributions to members are effectively returning a portion of excess expenses the members earlier incurred.”
Harrell has served on the boards of both banks and credit unions
John H. Murga, CEO of Hidden River CU, Pottsville, Pa. also weighed in.
“Free markets choose successful organizations, and most credit unions provide the financial products and services people want and need. It just may be credit unions do it better than banks with less fees and better service,” Murga wrote in The Wall Street Journal.
In Iowa, Scott Ramspott responded to a guest column in The Gazette that took issue with the credit union tax status.
“My credit union, the University of Iowa Community Credit Union--and all credit unions--are different because they are cooperatively owned and their only reason for being is to serve all their member owners,” Ramspott wrote.