Presumptive Democratic presidential nominee Senator John Kerry (D-MA) shares at least one thing in common with the Bush administration-they both support the credit unions' tax exemption. In a letter to the two national credit union trade associations, Kerry said, "I will continue to support America's credit unions and oppose any efforts to change the existing tax-exempt status of credit unions."
Last month, Treasury Secretary John Snow told a credit union rally in Washington that he, too, supports the credit unions' tax-exempt status. The credit union tax subsidy continues to grow. The FY 2005 subsidy will be $1.43 billion, up from $1.36 billion in 2004 and $1.3 billion in 2003. The cumulative total for FY 2005-09 is a whopping $7.88 billion. Perhaps this is good presidential politics, but it is bad public policy.