On-Site Coverage: Vitter Offers Mixed News for Credit Unions
WASHINGTON -- Sen. David Vitter (R-La.) expressed support today for keeping credit unions' tax-exempt status but said he is undecided about raising the cap on member business loans.
Vitter, a member of the Banking Committee, told attendees at NAFCU's Congressional Caucus that the administration and Congress are always looking for new revenue sources and "in some corners your tax-exempt status is at risk. I am supportive of you keeping your status."
But in response to a question, Vitter said the question of raising the cap on member business loans was less clear-cut.
"I supported raising the cap before the crisis but now I want to make sure that it doesn't cause a risk to the system," he said.
Vitter also noted that credit unions are tax-exempt in exchange for limits on some of their activities, including business lending.
He also criticized President Obama's decision to circumvent Congress by appointing to Elizabeth Warren to a key role in setting up the Consumer Financial Protection Bureau.
Vitter said she has a "clear record of being an ideologue" and criticized her for favoring a "nanny-style government" that is prone to excessive intervention in the workings of the market.
Warren will be a point person in setting up the bureau but Obama didn't appoint her to run the agency because senators in both parties warned she would have trouble being confirmed by the Senate.