Credit card rate caps a bad progressive idea

This article was originally featured in BizPacReview and The Daily Caller. Written by Leif Larson.

In a recent article published by the Daily Caller, Javier Palomarez weighed in on proposed federal legislation that would cap credit card interest rates at 10%, warning that the policy could have unintended and harmful consequences for small businesses and working families.

The legislation, led in the Senate by Sen. Bernie Sanders and supported by several progressive lawmakers, is framed by its sponsors as consumer protection. However, critics argue that imposing a government-mandated rate cap would function as price-fixing, limiting access to credit for higher-risk borrowers and reducing financial flexibility for entrepreneurs who rely on credit cards to manage cash flow.

Drawing on survey data and firsthand accounts from small business owners, Palomarez emphasized that credit cards often serve as a critical lifeline — helping businesses purchase inventory, cover operational expenses, and navigate unpredictable economic conditions. Restricting access to credit, he argues, could push vulnerable borrowers toward more costly or unregulated lending alternatives.

The article highlights broader concerns that well-intentioned policy efforts could ultimately reduce opportunity and financial stability for the very communities they aim to protect.

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Read the full article in the Daily Caller