Instead, Republican Rep. David Livingston said a better approach would be an initiative that would allow cities to repeal minimum wage laws, raise minimum wages statewide, and allow individual cities to raise them above state standards. said to help abolish the

That’s what’s causing inflation in these cities, in Arizona, and across the country, he said.

Senator Wendy Rogers of R-Flagstaff’s bill would have given businesses in those cities a tax credit equal to the difference between their wages and the statewide minimum wage of $13.85 an hour. For Flagstaff, this is a difference of $2.95 from his rate of $16.80 per hour. Tucson’s wages are expected to rise to $14.25 by the end of the year.

Voters in both cities approved the price increases.

Under Mr. Rogers’ plan, the state will make up for the tax losses by withholding income tax payments that have been poured into those cities. A state legislative budget analyst estimates Flagstaff at $17 million a year and Tucson at $120 million for him. But state taxpayers are still in trouble, as the analysis determined that the business tax credit far exceeds what the state can withhold from cities.

“The real answer is a tough message and this is the love part (to the Chamber). The answer is to repeal this horrible law. That’s the answer,” Livingston said.

“And as far as I’m concerned, we need to take it a step further,” he continued.

“Flagstaff could lead it, and then the laws passed that increased inflation should be repealed statewide,” he said. It’s the biggest factor driving down wages.”

Rogers’ bill has been defended by local chambers of commerce and small businesses, who argue that the higher minimum wage will increase costs and no longer want to invest in those businesses.

“This gives businesses some relief from having to operate under the strict minimum wage provisions,” Rogers said. “So the ripple effect is that economic recovery can occur and communities can recover and thrive.”

Senate Bill 1108 passed the state Senate with only Republican majority support.

At the heart of the battle is the fact that Arizonans voted in 2006 to set a state minimum wage above the federal minimum wage. They renewed that recognition 10 years after him by a margin of 58 to 42, completing a provision allowing communities to impose their own recognition.

Lawmakers cannot repeal voter-approved bills. What Rogers tried to do was a sort of doomsday plan that would create economic incentives for cities to impose and maintain high minimum wages on their own.

“What I love about this bill is that it doesn’t ban any city that wants to decide to unilaterally raise the minimum wage,” R-Mesa Rep. Justin Heap said at a hearing on Wednesday. “It’s simply saying that if the city government were to pass the costs on to all employers in the district in fiat currency, the city government would have to bear some of those costs. The consequences of my city’s bad policies…”

But Democratic Rep. Andrés Cano (D-Tucson) said the entire Republican claim about the minimum wage is a false narrative.

He praised Congress for tackling inflation, which he said was “a truly international and domestic issue” that has hurt workers’ families. He said he supported the idea that some kind of remedy is needed for

“What I don’t support is extorting payments from Peter to Paul,” he said, urging Tucson to pay $120 million for the voter’s decision.

Kano said he has an answer to those who claim the local minimum wage hike is hurting the local economy.

“Ask the voters…whether they agree with the initiative to deprive the people of Flagstaff of their hard-earned resources,” Kano said. pass or fail. Please do not come to this Congress for solutions that are not solutions, but healthy bites. ”

The bill failed to advance from a House committee by a 4-6 vote, as Livingston and Rep. Michael Carbone opposed it. As with all measures, it may be reinstated later, but it will require support from Livingston or Carbone.

The Republican-controlled Congress has made several attempts to penalize cities for raising the minimum wage under the 2016 voter initiative that approved the minimum wage hike, with success so far.

Their powers are limited because the state constitution forbids legislators from directly changing voter-approved laws unless they obtain a supermajority and the change “furthers the purpose” of the original bill. It has been.

Voters last year rejected efforts to give lawmakers the power to make some changes. But the initiative of Republican lawmakers and voters to enact laws that the business world doesn’t like still holds back many Republicans.

Gilbert Republican Rep. Travis Grantham lamented the whole notion of minimum wage. A minimum wage, which requires companies to pay at least a certain standard, has long been opposed by Republican lawmakers. And his criticism went even further to include government regulation.

“Once you enter this arena, you can never get out, so be very careful what you ask for,” said Grantham.

“Then it becomes more and more regulated, more and more expensive, and more and more difficult. That’s what we’re seeing now with the mandated minimum wage,” he continued. , they go away because the whole system collapses and everything collapses.”