Shuster testifies about his credit card interchange fee legislation

Congressman Shuster testified today before the House Financial Services Committee on his legislation, H.R.2382 which would reform the interchange fees banks charge on credit cards for small business transactions:

STATEMENT OF CONGRESSMAN BILL SHUSTER

BEFORE THE HOUSE OF REPRESENTATIVES COMMITTEE ON FINANCIAL SERVICES

CREDIT CARD OVERHAUL AND H.R. 2382, THE CREDIT CARD INTERCHANGE FEE ACT

OCTOBER 8, 2009

Thank you Chairman Frank, Ranking Member Bachus, and members of the Committee for allowing me to share information on this very important topic of interchange fees. I would also like to thank Congressman Welch for his leadership on this issue.

I believe action is needed to help level the playing field between consumers, small businesses, and credit card companies by requiring greater transparency and prohibiting unfair and abusive practices when it comes to interchange fees.

Last summer’s dramatic rise in gas prices was a prime example of inflexibility by credit card companies towards merchants and consumers over the interchange fee. As fuel purchases rose above authorized transaction limits, major card companies reserved the right to repay gasoline merchants a lower price than was actually purchased, particularly on smaller transactions.

I joined with Congressman Welch to introduce H.R. 2382, to curb this type of practice. This legislation focuses heavily on transparency in the hopes of determining whether credit card companies are pursuing anti-competitive practices. It makes Interchange Fees subject to full disclosure and terms and conditions set by credit card companies easily accessible by consumers. It would also prohibit profits from Interchange Fees from being used to subsidize credit card rewards programs. Small businesses, and ultimately consumers, should not be financing perks of luxury card holders.

To put the impact of Interchange Fees into the perspective of a business take, consider the convenience store chain Sheetz as a real life example. The Sheetz Corporation, which has 363 stores in 6 states, is headquartered in my congressional district. Last year, Sheetz paid twice as much in interchange fees as they took in net income after tax. Their second largest expense, after payroll, is the interchange fee. This means that for Sheetz, the interchange fee eclipses the company’s cost of rent for their 363 stores; and the interchange fee is one and a half times the cost of providing health care to their nearly 13,000 employees.

Sheetz is not alone. Sadly, it is joined by thousands of businesses across the country who are being unfairly penalized through interchange fees. Something must be done and I believe H.R. 2382 is the right vehicle for change.

Mr. Chairman, Members of the Committee, I hope you will consider the merits of this bill, as well as the serious struggle of business owners and their need for transparency, simplicity, and fairness when it comes to the issue of Interchange Fees. Thank you for having me here today.

Shuster speaks in support of his Flight 93 resolution

Today, the House of Representatives considered H. Res. 795, a resolution introduced by Congressman Bill Shuster, a member of the House Natural Resources Committee, honoring the people of Shanksville, Pennsylvania and the Flight 93 Ambassadors for their efforts in creating the Flight 93 temporary memorial and encouraging the completion of the National Park Service Flight 93 National Memorial by the 10^th anniversary of September 11, 2001.

Here are congressman Shuster's floor remarks in support of his legislation:

Shuster's House Resolution honoring Flight 93 Ambassadors to be debated today in the House

Here is the full text of Shuster's legislation honoring the Flight 93 Ambassadors and the people of Shanksville for their efforts protect and honor the crash site of Flight 93:

H.RES.795

Honoring the people of Shanksville, Pennsylvania, and the Flight 93 Ambassadors for their efforts in creating the Flight 93 temporary memorial and encouraging the completion of the... (Introduced in House)

HRES 795 IH

111th CONGRESS

1st Session

H. RES. 795

Honoring the people of Shanksville, Pennsylvania, and the Flight 93 Ambassadors for their efforts in creating the Flight 93 temporary memorial and encouraging the completion of the National Park Service Flight 93 National Memorial by the 10th anniversary of September 11, 2001.

IN THE HOUSE OF REPRESENTATIVES

October 1, 2009

Mr. SHUSTER submitted the following resolution; which was referred to the Committee on Natural Resources

---

RESOLUTION

Honoring the people of Shanksville, Pennsylvania, and the Flight 93 Ambassadors for their efforts in creating the Flight 93 temporary memorial and encouraging the completion of the National Park Service Flight 93 National Memorial by the 10th anniversary of September 11, 2001.

Whereas, on September 11, 2001, the passengers and crew of United Flight 93 courageously gave their lives, thereby thwarting a planned attack on our Nation's Capital;

Whereas the Flight 93 crash site is a profound national symbol of American patriotism and spontaneous leadership of citizen heroes;

Whereas the people of Shanksville, Pennsylvania, came together as a community to protect the sacred ground and construct a temporary memorial where Flight 93 crashed on September 11th;

Whereas the Flight 93 Ambassadors, created by members of the Shanksville community after the tragic events of September 11th, have exhibited selfless dedication and leadership by preserving and recounting the heroic story of the brave intervention of the passengers and crew against the terrorists to the memorial's visitors; and

Whereas in large part due to the efforts of the community and Flight 93 Ambassadors, Congress authorized the creation of a permanent national memorial as part of the National Park System under Public Law 107-226, the Flight 93 National Memorial Act: Now, therefore, be it

Resolved, That the House of Representatives--

(1) honors the Shanksville, Pennsylvania, community and Flight 93 Ambassadors for--

(A) their foresight, dedication, and leadership in protecting the Flight 93 temporary memorial, the preservation and sharing of the heroic story of the brave intervention of the passengers and crew against terrorists; and

(B) their efforts to establish a permanent national memorial to Flight 93; and

(2) encourages the Secretary of the Interior and the National Park Service to complete the Flight 93 National Memorial, as authorized by the Flight 93 National Memorial Act, by the 10th anniversary of the September 11th attacks.

What 9.8% Unemployment Really Means - By the Numbers

From GOP Conference:

“I know that ultimately the measure of an economy is, is it producing jobs that help people support families, send their kids to college?”

—President Barack Obama, September 20, 2009

Last week, the Department of Labor reported the highest unemployment rate in 26 years—9.8 percent for the month of September. Sadly, 9.8 percent only tells part of the story of the struggles of average Americans. A deeper look at the numbers reveals the true cost of the Democrats’ economic policies, especially for the nation’s most vulnerable people.

15,142,000: People unemployed and looking for work—the highest number ever.

263,000: Jobs eliminated in September.

1,916,000: People laid off in September—the highest number in one month ever.

2,884,000: Jobs lost since Democrats’ “stimulus” was passed in February.

9,179,000: People who are working only part-time because they cannot find full time employment.

2,219,000: People who want work, but who are not currently looking because of state the economy.

5,438,000: People unemployed and searching for work for more than 27 weeks—the highest level ever.

1,112,000: Job seekers that are new entrants to the workforce and have yet to find a job.

26.2: Average number weeks job seekers are unemployed after losing their jobs—the highest number since the statistic was first recorded in 1948.

25.9%: Unemployment rate among job seekers between the ages of 16 and 19—the highest level since the statistic was first measured in 1948.

15.4%: Unemployment rate among African Americans—the highest level since 1985.

12.7%: Unemployment rate among Hispanics and Latinos.

17%: Rate of underemployment, accounting for the unemployed and those who are unable to find adequate work.

15%: Unemployment rate among job seekers without a high school degree.

65.2%: Rate of the U.S. population in the workforce—the lowest level since 1986.

58.8%: Rate of the U.S. population who currently has a job—the lowest level since 1985.

Shuster - Democrats should focus on jobs

Tribune Democrat: Shuster - Democrats should focus on jobs

Full article follows:

Release of the Labor Department’s September jobs report putting national unemployment at 9.8 percent prompted a local Republican congressman to call for Democrats to shift their focus from health care reform and national energy taxes to getting people back to work.

U.S. Rep. Bill Shuster, R-Hollidaysburg, said in a prepared statement that the number of unemployed is the highest national rate of joblessness since 1983.

“Instead of pushing through another crippling national energy tax and a trillion-dollar takeover of the American health care system, Democrats should open their minds to Republican alternatives that are focused on restoring fiscal responsibility and getting Americans back to work,” Shuster said.

Especially disheartening, he said, is that nearly 3 million jobs have been lost since the Democrats passed the stimulus bill and promised to halt unemployment at 8 percent.

Shuster’s 9th Congressional District covers northern Cambria County and all of Somerset County south of Route 30.

Republican lawmakers have said they are frustrated by their inability to make changes at the table because of the strong Democrat majority.

“We are in the minority. It’s hard to get things passed,” Shuster aide Jeff Urbanchuk said Friday.

U.S. Rep. John Murtha, D-Johns-town, called the loss of 263,000 jobs in September disappointing, but noted the rate has declined from the 741,000 jobs lost in January.

“Recently, the nonpartisan Congressional Budget Office estimated that our economy would have lost

1 million more jobs if Congress hadn’t passed the economic stimulus bill,” Murtha said in a prepared statement.

“Creating jobs and economic development opportunity has always been my priority in Congress, and while the unemployment rates of most counties in southwestern Pennsylvania remain below the national average, we must continue to work together to strengthen our economy and put Americans back to work.”

Republicans lament what they view as the unwillingness of Democrats and President Barack Obama to work with them despite continued job losses.

“We’re now almost on the roof of 10 percent unemployment. That hits a psychological factor, and the president hasn’t met with Republicans since May,” Urbanchuk said.

Adding to the Republicans’ concern, Urbanchuk said, is the push for the massive “cap and trade” energy bill and health care reform that the GOP says will hurt small businesses and throw more people out of work.

Jobs Report Highlights Democrats’ Failure of Leadership in the Economy

“This is something that I ask every single one of my economic advisers every single day, because I know that ultimately the measure of an economy is, ‘is it producing jobs.’”

- President Obama (CNN’s “State of the Union,” 9/20/09)

Congressman Bill Shuster released the following statement after the Department of Labor released its September jobs report, which showed the national unemployment rate has increased to 9.8 percent, or 263,000 jobs lost last month. The economy continues to keep pace with the highest national unemployment rate since 1983:

“Another month, another bad unemployment report from Washington. This refrain has been going on far too long and it is time for the Democrats in Congress and the President to stop their failed ‘go it alone’ strategy on the economy that has done nothing but spend us into historic levels of debt and grow an endlessly hungry federal government.

Close to 3 million jobs – 3 million – have been lost since the Democrats passed their stimulus bill that they promised would grow the economy and halt unemployment at 8 percent. Their plan failed, but instead of changing course and learning from their mistakes, the Democrats continue to push job killing policies on America all the while deaf to the objections of the people they were elected to serve.

Instead of pushing through a crippling national energy tax and a trillion dollar takeover of the American healthcare system, Democrats should open their minds to Republican alternatives that are focused on restoring fiscal responsibility and getting Americans back to work.”

Two troubling changes to Senate healthcare plan

According to news reports, the Senate Finance Committee defeated two Republican attempts to keep healthcare reform legislation free from tax-payer funded abortions and access to illegal immigrants. The news stories are linked below:

Wall Street Journal: GOP antiabortion provision in health bill defeated.

The Hill: Senators turn back ID requirement for immigrant healthcare.