The Wisconsin Bankers Association: $4 million in lost tax revenue for Wisconsin
Wisconsin Bankers Association,
The Wisconsin Bankers Association: $4 million in lost tax revenue for Wisconsin Income up for state credit unions
(MADISON) - Wisconsin's non-profit financial institutions reported a 77.5 percent increase in combined net income over 2011, according to data released Wednesday by the Wisconsin Department of Financial Institutions (DFI). Total assets were also up by 4.4 percent for state credit unions, rising to $22.88 billion.
The 199 state-charted credit unions posted a net income of $49.4 million in the first quarter of 2012. Of that nearly $50 million in profits, credit unions contributed $0 in state or federal income taxes. That represents a subsidy of almost $4 million in this quarter based on comparable tax rates of other Wisconsin businesses and financial institutions. Annually, Wisconsin taxpayers subsidize credit unions over $15 million in tax revenue that could have been reinvested in public schools, libraries and other services.
"Credit union income and assets continue to rise, signifying a growing divide between mission-driven credit unions and profit-driven credit unions," said Rose Oswald Poels, president/CEO of the Wisconsin Bankers Association. "Several Wisconsin credit unions have abandoned their congressionally mandated mission to serve those of modest means and are instead focusing on growth and profits, which affects the numbers for the entire industry."