Grocers concerned as lawmakers introduce Tariff Transparency Act

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Two state Democratic lawmakers are targeting what they call “hidden taxes” on everyday goods, introducing legislation that would require retailers to itemize the cost of federal tariffs on consumers’ receipts.

The legislation was covered in a Sept. 2, 2025 Lakeland Times piece. According to the story:

State Sen. Brad Pfaff (D-Onalaska) and Rep. Andrew Hysell (D-Sun Prairie) are circulating draft legislation that would require large retailers in Wisconsin to identify tariffs assessed to goods purchased by consumers through a separate line item on sales receipts and invoices.

The lawmakers say their Tariff Tax Transparency Act would make sure consumers know exactly how much of their grocery bill, appliance, or hardware store purchases are driven by federal tariff policy.

Pfaff and Hysell say tariffs are at levels not seen since 1933, and they point to an estimate by financial services firm Goldman Sachs that American households will pay an extra $2,400 in costs this year alone because of the tariffs, which they say are nothing more than taxes businesses pay to the government and then often pass along to consumers.

According to the story, the state and federal bills reflect a growing effort by Democrats to make tariff costs a political issue heading into 2026, but the push to require itemization of tariffs on retail receipts isn’t getting universal backing.

The Wisconsin Grocers Association issued a statement — which was included in the story — warning that the plan would add layers of cost and confusion and would actually create more red tape for retailers. Implementing the requirement would also mean that many businesses would have to make major upgrades to retail systems and production technology just to track tariff costs buried deep in the supply chain.

“It would also demand extra staff time to chase down pricing details that suppliers often don’t even share or maybe even have — adding complexity and cost to every transaction,” the association stated.

What’s more, the WGA added, Wisconsin retailers and ultimately Wisconsin consumers will pay for those compliance costs. Add to that a significant chance that the bill would mislead shoppers.

“Prices are influenced by every- thing from fuel surcharges to labor costs to weather disruptions,” the association stated. “Singling out tariffs oversimplifies a complex reality and turns receipts into political commentary.”

The WGA urged lawmakers to reconsider placing the burden of federal tax transparency on local businesses: “If legislators want to know more about tariff impacts, we suggest working with members of Congress on the act.”

In Congress, U.S. Rep. Jamie Raskin (D-Maryland) has introduced the Truth in Tariffs Act, which also requires large retailers to clearly display the portion of an item’s price attributable to tariffs.

Raskin pointed to a Penn Wharton University of Pennsylvania budget model report that showed that Trump’s tariff plan, as of this past April, was projected to raise significant revenue — more than $5.2 trillion over 10 years, which the report stated could be used to reduce federal debt and encourage private investment.

However, the model reported that tariffs would reduce GDP and wages by more than twice as much: “All future households are worse off. The estimated economic declines are likely lower bounds, with actual declines potentially even larger.”

According to the model, larger tariffs reduce the openness of the economy, including international capital flows.