Taxpayers and consumers, beware:
Legislation pending in capitol would impose a 35% tax on credit unions.
WASHINGTON – With President Bush in the White House, tax hikes at the federal level are completely off the policy table – only over his \’dead body\’ would Congress raise taxes.
But at the state level, tax-hiking legislation is ubiquitous, and this trend, sadly, has reached Salt Lake City. Under the guise of "tax equity," politicians in the state house and senate are considering legislation that would impose a 35% tax on credit unions that have over $100 millions in assets and also operate in more than one county. Analysis reveals that the tax will take as much as $15 million from credit unions and consumers per year.
"Under the guise of \’tax equity,\’ the Utah legislature is pushing for a tax hike on credit unions and consumers," said taxpayer advocate Grover Norquist, who heads Americans for Tax Reform (ATR) in Washington. ATR is widely considered the most influential taxpayer advocacy organization in the country.
The legislation, H.B. 162, purports to promote tax equity between banks and credit unions by imposing the $15 million tax hike. But true tax equity can be achieved by cutting the tax on banks – rather than hiking the tax on credit unions.
"This bill is nothing more than a stealth tax hike by tax-and-spend legislators," continued Norquist. "If politicians really wanted an equitable tax system, they would reform the laws pertaining to banks and credit unions throughout the state – not single out specific lenders for a tax hike. Reform is crucial, but tax hikes never are," he concluded.