Jeb Hensarling, the chairman of the House Financial Services Committee, pledged to protect the credit union tax exemption on Tuesday, saying that taxation on small businesses has contributed to America’s slow economic recovery.
“But if I have anything to do with it, there will not be taxation on our credit unions,” Hensarling said, according to Credit Union Times.
Hensarling said that his top three goals for the committee include reducing the regulatory burden on community financial institutions, reform of the housing market and changes to the Federal Reserve’s monetary policy.
An outspoken critic of the Dodd-Frank Act, Hensarling said that he disagrees with the notion that the legislation was necessary to prevent Wall Street abuses because regulators lacked the authority to supervise them, pointing instead to the Federal Reserve’s monetary policy that cut interest rates and established housing policies that “incented financial institutions to lend money to people to buy homes they could not afford,” according to Credit Union Times.
Additionally, Hensarling criticized the CFPB and Director Richard Cordray, saying that the watchdog agency has the authority to ban credit products that “could help fulfill the American dream for many…members.”
“How making consumer credit more expensive and less available, how that has anything to do with advancing consumer interest is beyond me,” Hensarling said, adding that the best way to protect consumers is to oversee markets for fraud, Credit Union Times reports.
Hensarling also expressed doubts regarding whether Federal Reserve Chairman Ben Bernanke can effectively wind down the nation’s balance sheet.
“My fear is that [quantitative easing] infinity is creating outsized inflationary risks that can make us one day look back one day longingly and nostalgically at the Carter years,” Hensarling said, according to Credit Union Times. “The challenge is not monetary, it’s fiscal.”