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A scheme to avoid paying taxes. CU members argue that they [should be] tax exempt because 1. They are member-owned. (Other member-owned coops pay taxes on non-disbursed earnings) 2. They can't issue stock. (Lots of companies--many LLCs, sole proprietorships, S [Corporations], etc. -- do not issue stock but still pay income taxes. 3. CUs ([allegedly]) provide better service (tax exemptions are not awarded to companies that provide the best service).
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