Despite vocalizing our concerns, the authors of the report, released in October, not only recommended the expansion of credit union membership and business lines, but that credit unions should have the right to buy bank assets. This was based, in part, on a factual error in the report, specifically that credit unions pay state income taxes (they do not), and therefore, there would be no tax loss to the state. ICBC protested to DORA and the Governor’s Office, and the report was recently amended to delete the assertion that credit unions pay state income taxes. But the finding that these purchases would have little fiscal impact on the state was not deleted, creating what appears to be a state-supported talking point for credit union advocates. Obviously, ICBC will vigorously oppose this latest mission creep by the credit union industry. We will not only focus on the tax impacts the bill would have on the state, but also the impacts on small businesses, agricultural lending and philanthropy that will dissipate when credit unions acquire the assets of banks — especially community banks. It might be a new year, but it sure seems like déjà vu all over again. INDEPENDENT REPORT | 7
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