[Congressional Record Volume 143, Number 23 (Thursday, February 27, 1997)]
[Extensions of Remarks]
[Page E351]
From the Congressional Record Online through the Government Publishing Office [www.gpo.gov]




               MAKING GOVERNMENT AGENCIES MORE ACCESSIBLE

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                          HON. JAMES P. MORAN

                              of virginia

                    in the house of representatives

                      Thursday, February 27, 1997

  Mr. MORAN of Virginia. Mr. Speaker, today I am introducing 
legislation that will amend the truth in savings law to make Government 
agencies more accessible to the public.
  In recent years State and local governments, along with the Federal 
Government, have made a conscientious effort to improve the quality and 
efficiency of their customer services.
  Public expectations now focus on convenience, quickness, and 
completeness when receiving public services.
  Given the option, many people would prefer to register their car, pay 
their water bill, or their real estate and personal property taxes over 
the telephone with a credit card.
  It is quick, convenient, and spares people the time and expense of 
visiting the motor vehicle office or tax office and spending their time 
waiting in long lines.
  Payment of taxes with credit cards has the added benefit of enabling 
taxpayers to avoid the stigma and added expense of late tax payments, 
since the card holder can avoid the late penalty fee and extend their 
payments out over several months.
  This legislation is necessary because the major credit card companies 
insist that public agencies be treated the same as department stores 
and restaurants who are prohibited by the credit card companies from 
passing the cost of credit card transactions directly onto the 
customer.
  Merchants must swallow this cost or pass this cost on to their cash 
paying customer through higher prices. Few merchants complain because 
they can raise their prices and encourage their customers to buy more 
on credit than they could pay with cash.
  Public agencies are different.
  The Government should not raise everyone's taxes to pay for credit 
card user fees.
  Moreover, State and local law may prohibit or restrict public 
agencies from absorbing or spreading this cost.
  If the Internal Revenue Service were to allow the public to pay taxes 
with a credit card, it could not absorb the 3-percent service charge 
per credit card transaction.
  Under Mastercard and Visa's policy, the IRS would have to absorb the 
$300 million in service charges the two companies would collect on $10 
billion worth of credit card tax payments. State and local government 
agencies face a similar obstacle.
  The legislation I am introducing will remove this obstacle and 
provide the public a convenient option for conducting their business 
with public agencies at a minimum of expense.
  I urge my colleagues to support this legislation.

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