WUFT News

Tax Increase for Credit Unions Remains Unlikely

By on October 28th, 2013

Stewart Thomas has banked at Sunstate Credit Union in Gainesville for 25 years.

“They’re community based.  All the money deposited in the banks is used for loans inside the community,” said Thomas.

Right now, his account earns more interest there than it would at a bank. That’s partially because of credit unions’ tax-free status.

Organizations like the American Banking Association are lobbying for credit unions to be taxed.

The argument is that because banks and credit unions are after some of the same business—savings accounts, car loans and commercial loans.

According to University of Florida Emeritus Banking Scholar Arnold Heggested, that would help level the playing field.

“Taxing the unions would cut around $2 billion from the federal deficit every year,” said Heggested.  “It will help a little.  A billion here and there begins to add up.”

Now, Campus USA Credit Unions is asking their members to write lawmakers, to keep their tax-free status.  Campus USA is located in Alachua, Columbia, Leon and Marion counties.

Still, according to Heggested, taxing credit unions’ income is unlikely.

“The banks have been lobbying for 60 years and haven’t gotten it yet,” said Heggested. “Given so many people are members and believe in them, I think it’d be a real surprise to see that tax go up.”


This entry was posted in Business. Bookmark the permalink.
 

More Stories in Business

Alex Skobel and his girlfriend Loree Schulson share a moment in one of the Skobel Homes properties. Schulson joked she was trying to steal Skobel's warmth while touring the home on a cold Sunday.

UF Graduate Builds Future Out Of Recession

The economic recession in 2007 led to the unemployment of millions of Americans. However, one University of Florida graduate turned the downturn into opportunity.


Hitchcock's Markets is currently the only grocery store in Alachua.

Alachua Residents Ready For New Grocery

Publix is moving to the small city of Alachua and will compete with the only other grocery store there called Hitchcock’s Markets. Residents are excited to see more diversity in their grocery shopping.


Cory Wise (left) and Courtney Buckley (right) work together to clean a residence. Wise and Buckley work for Student Maid, owned by Kristen Hadeed.

National Organizations Encourage Female Business Owners

What started out as a cleaning job to pay for a pair of jeans turned into a booming Gainesville business. Since then, business owner Kristen Hadeed’s cleaning company, Student Maid, has been successful and is growing daily.


First Magnitude Brewing Company in Gainesville fills growlers in the 32-ounce size (left) and the gallon size (right). A longstanding ban on the popular 64-ounce growler prevents Florida craft breweries from filling or selling containers of that size.

Florida’s Craft Beer Industry Sees Growth Despite Growler Ban

Florida brewers are thriving despite a controversial law that prohibits the sale of 64-ounce beer growlers. A lawsuit calling the limit unconstitutional could change all that.


The Blanche Hotel is proposed to undergo a $14 million renovation to bring more businesses to downtown Lake City.

Historic Lake City Hotel to Undergo $14 Million Renovation

A project to renovate the historic Blanche Hotel in downtown Lake City will soon be underway. Lake City Mayor Stephen Witt said he is hoping the renovations bring new allure to downtown Lake City.


Thank you for your support

WUFT depends on the support of our community — people like you — to help us continue to provide quality programming to North Central Florida.
Become a Sustainer
I want to support FM 89.1/NPR
I want to support Florida's 5/PBS
Donate a Vehicle
Day Sponsorship Payments
Underwriting Payments