Everyone should share in costs of providing important public services

This year, the average American family of four will pay more than $11,402 in federal income taxes according to the Internal Revenue Service.

Nebraskans with taxable income in excess of $58,000 (married, filing jointly) will pay a state income tax rate of 6.84 percent. Private businesses and corporations pay similarly high corporate income tax rates. Unfortunately, sizable segments of the Nebraska economy, like the Farm Credit System and federally chartered credit unions, pay little or no state income taxes!

The state of Nebraska uses dollars collected through the state income tax to support quality public services, including education and public safety. Nebraska's hometown banks are proud of the contributions they make to support the state and our communities through payment of taxes as well as charitable contributions to support a wide range of community priorities. In addition, Nebraska banks are honored to help finance the dreams and ambitions of our fellow Nebraskans.

The Farm Credit System, established by the federal government nearly 100 years ago to provide a reliable source of credit for the nation's farmers and ranchers, receives a tax exemption on profits generated from real estate lending.

In addition, FCS has expanded its reach far beyond its federally mandated mission of supporting first-time farmers. FCS now provides loans for rural estates, weekend getaways, hunting preserves, and large telecommunications projects. In some cases, FCS also competes directly with your (tax-paying) hometown bank on commercial and residential home loans. The Nebraska Bankers Association encourages Nebraskans to consider how the FCS' special tax exemption status limits their support of important state and local services.

Federally chartered credit unions, much like FCS, do not pay any state or federal income taxes. Likewise, credit unions have special tax status that exempts them from paying a wide variety of state and local taxes. Currently, 50 of these non-tax-paying federal credit unions are doing business across Nebraska. As credit union membership expands, so does the cost to the American and Nebraska taxpayers. The average American family pays more in taxes each year than the entire $1 trillion credit union industry! Credit unions often promote the benefits of "member ownership." As an owner, would you be proud of not paying taxes to support important community services?

Education and public safety are the cornerstones of every strong and healthy community. With the ever-important April 15th tax deadline occurring this week, we encourage you to remember which tax-paying institutions actively support the high-quality public services that allow our Nebraska residents and communities to grow and prosper!