U.S. Rep. Ruben Gallego wants to impose an excise tax on foreign entities exporting crops from dry parts of the country, an issue Arizona is facing.
The Phoenix Democrat filed the Domestic Water Protection Act of 2022 Thursday. If enacted, it would impose a 300% excise tax on exported crops that need more water than others.
The measure is aimed at a single company tied to the Saudi Arabian government.
A deal between Fontomonte, a Saudi-owned agriculture company, and the state of Arizona allows them to harvest alfalfa with groundwater and send it back to the Middle East to feed cattle. The company uses enough water to supply 54,000 homes annually, Gallego’s office said in a news release.
“While Arizona experiences the driest conditions in centuries, our water is being given away in a sweetheart deal with Saudi Arabia,” Gallego said. “Saudi Arabia has stated their intention to rob Arizonans at the gas pump, but they are also already stealing our water. We need to act to stop our state from being sucked dry by a nonsensical agreement. Arizona’s aquifers are meant to serve Arizonans, and this bill will make that happen. While we still desperately need a comprehensive strategy to mitigate the threat of drought, we must take immediate action on the pilfering of our groundwater.”
He’s referencing the Saudi government’s move to drastically cut oil production, which is likely to send gas prices higher weeks before Democrats make a push to fend off Republicans in the Nov. 8 election.
Gallego said the high excise tax represents the “unjustifiable disparity in land lease rates between domestic and foreign producers in Arizona.”
A representative for Fondomonte wasn’t available for comment as of Friday morning.
Republished with the permission of The Center Square.
