WASHINGTON–The Defense Credit Union Council is cautioning the Council of the District of Columbia over any plans it may have to ban processing fees on sales tax and tips. The proposal was included in the District’s Budget Support Act, with DCUC noting it was done without public hearings or debate.
Separately, DCUC has also sent a number of other letters to federal legislators on Capitol Hill (see below).
In its letter to the D.C. Council, DCUC said many CU members live, work, and do business in the District of Columbia, and along with small businesses are dependent upon plastic cards and payments for conducting their lives/businesses.
‘Strongly Oppose’
“We have been made aware that some Councilmembers may be considering an amendment to the Budget Support Act to fundamentally change the way credit and debit cards are processed in the District of Columbia,” the DCUC wrote “We strongly oppose any such amendment because, aside from thwarting legitimate public input on the issue, it will cause chaos, confusion, and outrage for District small businesses and their customers.
“The proposed amendment would mirror D.C. Bill 26-138, which is primarily advocated for by big box retailers and large national restaurant chains, and is fraught with both unknown and unintended consequences,” the letter continues. “Not the least of these include lower District sales tax collections and outrage for District residents and visitors when they are unable to use their own debit or credit card to pay for taxes and tips on meals, groceries, and other everyday purchases. Finally, this action would dramatically reduce the wages of tipped employees in the District, as many of their customers do not carry cash, which will be necessary to pay tips.”
DCUC also told the Council the proposed amendment circumvents public comment.
The full letter can be found here.
Actions on Capitol Hill
In addition, the Defense Council has:
- Sent a letter to the House Judiciary Committee ahead of a hearing on bankruptcy.
- Sent a letter to the Senate Judiciary Committee ahead of a hearing titled “Beyond the Smash and Grab: Criminal Networks and Organized Theft.”
- Sent a letter to the House Armed Services Committee and Senate Armed Services Committee ahead of mark-up of the National Defense Authorization Act.