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AZ bill to penalize Tucson, Flagstaff for higher minimum wages fails

Bob Christie Capitol Media Service

PHOENIX — Two Republicans joined all Democrats on a House panel on Wednesday to defeat measures designed to force the cities of Tucson and Flagstaff to pay higher minimum wages, even as GOP lawmakers voted. It’s not because I like the boost approved by .

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, that’s a difference of $2.95 per hour. Tucson’s wages are expected to rise to $14.25 by the end of the year.

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Voters in both cities approved the price increases.

Under Rogers’ plan, the state will make up for the tax losses by withholding income tax payments that have been poured into these 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 of the Chamber, but the answer is to repeal this horrible law. That’s the answer,” said Livingston.

“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“Flagstaff could lead it, and then the laws passed that increased inflation should be repealed statewide,” he said.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 allows businesses to take some relief[from]the onerous minimum wage provisions they have to operate under,” Rogers said. It means that it can happen and the community can recover and thrive.”

Senate Bill 1108 It previously passed the state Senate with only majority support. At the heart of the battle is the fact that an Arizonan voted in his 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 kind of end run, creating economic incentives for cities to impose or maintain their own higher minimum wages.

“What I love about this bill is that it doesn’t ban cities that want to decide to unilaterally raise the minimum wage,” R-Mesa Rep. Justin Heap said at a hearing on Wednesday. rice field.

“If the city government passes the cost on to all employers in the district in fiat currency, it simply says that the city government must bear some of the costs,” he continued. “It’s actually affecting bad policies in my city.”

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, dumming Tucson $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, the people of Flagstaff, if they disagree with the initiative to take away their hard-earned resources,” Kano said.

“(Submit) a referral to a vote to abolish the minimum wage and see if it passes or fails,” he said. “Don’t come to this Congress for solutions that are healthy bites, not solutions.”

The bill failed to advance from the House committees by a 4-6 vote, as Rep. Livingston and Rep. Michael Carbone (R-Buckeye) 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 prohibits legislators from directly changing voter-approved laws unless they obtain a majority and the changes “further the purpose” of the original bill. increase.

Voters last year rejected efforts to give lawmakers the power to make some changes. I’m here.

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. This is what we are seeing now with the mandated minimum wage,” he continued. “Eventually, they will be gone because the whole system will collapse and everything will collapse.”

Get your morning recap of today’s local news and read the full story here: tucne.ws/morning



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