In Washington, the most difficult thing to kill is a bad idea. And one of the worst will soon return: the so -called credit card competition law.
How bad is it? The economic analysis of Oxford Economics Research, an independent advice firm, discovered that this bill could cost the economy of the United States $ 228 billion and 156,000 jobs.
The bill is an employment murderer and would impose an acquisition of the government of the credit card system. Defending by corporate and conglomerates of groceries, the growth mandates proposed in the legislation threaten the safe and convenient payment system that consumers and small businesses trust daily.
The result would be an economic decrease and the loss of jobs.
Fortunately, the bill was blocked in 2022 and 2023 by the bipartisan opposition. It also opposes consumption groups, unions, mothers and pop companies and the local financial institutions that serve them. The tourism industry also opposes the bill. Because? Because one of the first things that is coming if this bill would be approved would be rewards programs.
Around seven out of 10 Americans have a credit card with rewards, and airlines, hotels, car rental and food are the most popular categories of spending and redemption. Refund reimbursement programs are the most popular, but card holders trust travel rewards when vacation or trips. In 2022, accumulated miles of the airline credit cards paid 15 million trips of national visitors who supported $ 23 billion in economic activity.
They are not only hotels or airlines chains that benefit from consumer trips, but also thousands of small businesses, from local restaurants to sandwiches stores and Go-Kart tracks on the beach. Many Americans trust tourism to stay employees.
It is well known in the travel industry that winter can be a dry spell for beach or lake destinations. Can you imagine if winter never ended? Did the crowd never return? It would be devastating: for local workers and economies more broadly because taxes pay tourists in restaurants, hotels, service stations or amusement parks help to finance everything, from local schools to improvements on roads and hospitals.
The last thing Washington wants, on both sides of the hall, is to start 2025 with an economic slowdown. The Americans are still cautious about spending and trust reward points so that a family vacation is affordable.
Those trips are important: the latest Show Travel numbers were responsible for approximately $ 1.2 billion on direct expenses. That expense led to a general economic footprint of $ 2.6 billion.
Oxford’s investigation shows that, if this bill is approved, discretionary expenditure will probably decrease in all areas to $ 80 billion. That is hundreds of dollars for each home. There would be less money for film tickets, pizza orders, clothes or anything not essential.
When this bill inevitably appears, our leaders must remember the 156,000 jobs that these mandates will erase. They need to remind the constituents who trust the rewards of the credit card. Politicians are expected to remember what this bill will cost.
Richard Hunt is the Executive President of the Electronic Payments/Insids Coalition
