In her letter printed March 20, Natalie Gordon stated, "Credit unions are not required to pay taxes, so we all end up picking up the slack." It is true that credit unions, as such, do not pay taxes. However, the earnings of the credit unions are paid to the members as interest on savings or money on deposit. Each member receives a Form 1099 Int showing that member's share of the yearly earnings of the credit union. The member then pays appropriate taxes on these earnings.
Therefore, taxes are paid on the earnings of the credit unions, and no one is required to "pick up the slack."Ned M. Vowles