Last week, the first installment of How Credit Unions Are Draining Louisiana Communities was published..
This week, I am providing a more detailed article outlining the direct and measurable impacts that credit unions purchasing banks in Louisiana will have on local governments.
Louisiana is somewhat unique in the way banks are taxed. In our state, both C-Corp and S-Corp banks are subject to a corporate tax, based on the bank’s capital and income, called the Bank Shares Tax. Under this system, banks in Louisiana pay taxes directly to the parishes, towns, and cities in which they operate. 100% of the Bank Shares Tax remains local— suppor t i n g schools, fire departments, police forces, infrastructure, and other vital public services.