Taxing credit unions would make economy worse, says publication

Credit unions provide a vital balance wheel for America's lending economy and can help soften the blow of a credit crunch. Ending their tax exemption is "almost sure to make things worse," said a columnist in the National Review Online Monday.

A senior fellow at the Competitive Enterprise Institute, discussed a Treasury Department report that includes a proposal to tax credit unions $19 billion over the next decade. He said that taxing credit unions would affect the economy. He writes:

Not only would the 90 million or so Americans who belong to credit unions end up paying this tax directly, but the tax would likely ripple through the economy, restricting already tight access to credit, and making just about everything a bit more expensive.

Wow! That would take a bite from my wallet! Read the entire column here.