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LSCU submits letter to President Obama in response to FBA letter

On June 28, 2011 Alex Sanchez, president and CEO of the Florida Bankers Association (FBA), sent a letter to President Obama, Senate Majority Leader Reid, and Speaker Boehner explaining why the FBA believes Congress should eliminate the corporate income tax exemption for credit unions. In his letter, Mr. Sanchez incorrectly refers to this exemption as a tax loophole and unconvincingly tries to explain why credit unions, particularly billion-dollar and above asset size credit unions, should be forced to pay corporate income taxes.

LSCU President/CEO Patrick La Pine felt it necessary to issue a response on behalf of the League, pointing out Mr. Sanchez’s inaccuracies and factual distortions. Attached is the League’s response to Mr. Sanchez’s letter.

As an industry, credit unions must remain vigilant of these types of attacks. While this is the first shot across the bow by the Florida Bankers Association, surely it won’t be the last. The League remains committed to protecting the congressionally approved tax exemption for our credit unions, and the League will not stand by and allow the Bankers to define our message.

The League will keep you updated on this topic as it progresses.

If you have any further questions concerning the corporate income tax exemptions for credit unions or the League's response to Mr. Sanchez's letter, contact Director, Legislative Affairs Jared Ross at 866.231.0545, ext. 1012.