The Saint Peters Blog has an interesting story posted this week. Peter Schorsch tackles the issue of public deposits and credit unions. Schorsch writes that banks are fighting credit unions' ability to accept public deposits because they don't pay taxes. However, during this legislative session bankers are fighting a bill that would eliminate a tax break for them in relation to foreign banks in Florida. It seems to show the bankers wanting a tax break, while saying others shouldn't have one.
Schorsch writes, "Take Century Bank right here in Tampa, for example. This is just one of about 20-plus banks that operate as Sub-S corporations in Florida, that pay the same taxes as not-for-profit credit unions, yet they are currently allowed to serve as public depositories. No one seems to have a problem with that.
Again I ask, if the whole argument for why credit unions should not be allowed to serve as public depositories falls on the issue of taxes paid, then it’s a wonder how this argument hasn’t fallen on its face."
The blog post really hits the nail on the head, what's good for one side should be good for the other. Bankers can't lobby for a tax break while trying to squash the credit union tax exemption. Schorsch puts it even better, "hypocrisy (banks) is worth a note and fairness should go both ways."