A new op-ed in Kentucky says the state’s budget shortfall could be fixed if credit unions paid taxes like community banks.
Details: In a new Bowling Green Daily News op-ed, Jim Decesare—executive director of the Bluegrass Community Bankers Association—says:
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Credit unions’ tax exemption costs Kentucky tens of millions of dollars each year.
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Kentucky community banks in 2024 paid $204 million in income taxes.
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Large credit unions use their tax advantage to fuel expansion, including acquiring community banks.
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Kentucky lawmakers should level the playing field to ensure that growth in the financial system benefits the people who live and work in the state.
ICBA View: Following the latest reported acquisition of a tax-paying community bank by a tax-exempt credit union—the second deal of the year—ICBA last week continued calling for policymakers to address the favorable credit union tax treatment that is driving these deals.
Real-World Impact: A recent ICBA data analysis details how these acquisitions are harming small businesses and local communities, finding that in areas where community banks participated in Small Business Administration lending programs, SBA lending fell after nearly 80% of credit union acquisitions.