You know it’s a bad liberal policy when Illinois—yes, Illinois—slams the brakes.
Gov. J.B. Pritzker, high priest of progressive pet projects, just quietly punted the state’s shiny new ban on credit card swipe (or interchange) fees for sales tax and tips for another whole year. Why? Because the whole thing was, frankly, a dumpster fire. And if it’s too dumb for Illinois, it should be radioactive for any conservative legislatures.
Here’s what went down: in a fit of retail lobby-inspired fervor, Springfield passed a law banning credit card companies from charging interchange fees on taxes and tips. Great optics if you hate banks and love headlines.
In reality? It’s a regulatory migraine. Cue the lawsuits, carveouts, and the judicial head-scratching. Add the technical impossibility of tracking Illinois-specific tax charges across a nationwide network, and you’ve got policy so convoluted even bureaucrats are gagging.
So Pritzker—Mr. Tax-the-Rich, Mr. Regulate-It-All—signed a one-year delay. Because even his administration realized they had no idea how to implement the thing. That’s not just a warning sign; it’s a full-blown air raid siren.
Now here’s where things get absurd: conservative states are lining up to copy it. That’s right, free-market flag-wavers are racing to replicate a populist mess so terrible that even Illinois stuffed this into a legislative junk drawer. Newsflash: if Pritzker thinks something’s too complex and counterproductive to roll out, put the pen down.
The truth is, swipe fees exist for a reason. They fund fraud protection, keep payment networks running, and reward customers with points, cashback, and the occasional airport lounge daydream. Slashing them doesn’t help small businesses—it just shifts the costs and erodes the very payment system they rely on.
So here’s your takeaway: If it’s too messy for Illinois, it’s way too dumb for Arizona, Oklahoma, Florida, Texas, or any other red state tempted to look “populist” by kneecapping credit cards. And if purple states think they can thread the needle? Good luck—this policy doesn’t scream “bipartisan win,” it screams “fiscally faceplanting in front of a live audience.”
Do your constituents a favor: leave swipe fees alone and let the market work. And maybe—just maybe—don’t take your policy cues from the state that still thinks Chicago politics is a masterclass of good governance.