Dems are pushing a tax that would hurt the poor the hardest

Arizonans have experienced their share of challenges throughout this pandemic, but in many ways, small businesses and the working class have borne the brunt of it.

That recovery is now in jeopardy as Democrats in Congress and President Joe Biden push large tax increases to fund their $1.75 trillion social safety plan. If signed into law, these taxes, including levies on tobacco products, will have unintended consequences for generations to come, threatening our state’s economic recovery and national security.

We have made huge strides here in Arizona with businesses now having recovered 100% of all private-sector jobs, according to an August employment report from the Office of Economic Opportunity. Arizona is currently outpacing the national average, which rests at 79%.

These results are due to the hard work and resolve of everyday Arizonans and small businesses that sacrificed and came out stronger.

Now, Democrats are attempting to ram through the Biden agenda in one reconciliation bill full of wasteful spending and tax hikes.

The $1.75 trillion spending proposal is billed as taxing the rich and making them pay their fair share. But the truth is, it actually includes regressive taxes on products used by working-class Arizonans in direct violation of President Biden’s pledge to not increase taxes on families earning less than $400,000 a year.

These taxes also disproportionately impact retail businesses and convenience stores just coming back from the cuts of the pandemic.

More importantly, these taxes would add fuel to the crisis along our southern border by pushing consumers to the underground market at a time when Arizona has been ranked among the worst states for illicit trading and smuggling.

Trade relationships at our border are a critical component of our economic recovery which is why one of the most concerning provisions in the reconciliation bill has been the hiking of federal excise taxes on tobacco and nicotine products. Our border resources are already stretched thin due to a lack of political leadership and this is the last thing Arizonans need.

Responsible Arizona retailers invest their time and resources to ensure their employees are trained to abide by local, state and federal laws. But in an illicit market, tobacco sales are outside of the law, leading to unregulated products potentially being targeted toward users of all ages.

Lawmakers must acknowledge and take into consideration these unintended consequences when they pass tax increases.

The costs don’t stop there. Fifteen percent to 19% of Arizonans use tobacco products and the majority of them are middle- to low-income users.

The Tax Foundation found that the fiscal impact to Arizona from these taxes would be a loss of $11.4 million, with another report showing the state losing nearly 100 jobs per year.

With lawmakers going back to the drawing board, now is the time for us to demand leadership and accountability from our representatives. If not, voters will hold politicians accountable for their irresponsible spending habits and policy decisions that will be felt for generations to come.