January 3, 2003
ICBA Works for Community Bank Tax Relief in 2003
The New Year may bring fresh tax relief for community banks and their core customer base. The ICBA is working with the Bush Administration and the key tax writing committees in Congress to promote community bank-friendly tax relief as part of any new "economic growth" tax relief launched in 2003. Independent Community Bankers in Iowa have met with incoming Senate Finance Committee Chairman Charles Grassley (R-Iowa) to discuss our priority tax relief items with the Chairman. Specifically, the ICBA has urged that any tax relief include the expansion of Subchapter S availability for community banks, permanent estate tax relief, expanded saving incentives, and tax relief on both interest and dividend income paid to individual bank shareholders and customers. Most recently, ICBA, America's Community Bankers, and the American Bankers Association joined forced in a letter to President Bush urging a tax exclusion for a portion of both interest and dividends received by individuals. A dividend income exclusion presently is very alive in the White House. See ICBA's tax letter at www.icba.org.