Abernathy Reiterates Administration's Position on CU Taxation to Banker Group

HARRISBURG, Pa. – David Zuern, incoming chairman of the Pennsylvania Bankers Association and representatives of local banks met with U.S. Treasury Department Assistant Secretary for Financial Institutions Wayne Abernathy on April 26 at a roundtable discussion hosted by U.S. Rep. Todd Platts (R-Pa.) and tried to press the Treasury official to reconsider the Bush administration’s position on the taxation of credit unions. At the meeting which was also attended by about 20 credit union leaders, Abernathy restated that the Treasury Department is “not in favor of taxation of credit unions and is not entertaining taxation of credit unions.” He added that “any time you tax anything you get less of it” and that credit unions had provided needed financial services to many Americans. Pennsylvania Credit Union Association President/CEO Jim McCormack expressed his appreciation for “the support of the Bush administration, Treasury Secretary Snow and Assistant Secretary Abernathy on this issue. Clearly they understand that the structure of credit unions justifies their tax status under federal and state law.” Abernathy stated that he believes his “prime directive” as a regulator is non-interference with institutions striving to serve their members. “One of the great strengths of our country is our wide selection of choices for financial institutions,” where the customer ultimately decides which financial institutions to use, he stated.