Arizona Gov. Doug Ducey announced his state will no longer offer tax incentives for Nike to move to the state after it was revealed they pulled a new shoe design that featured the Betsy Ross American flag.

The decision was made after former NFL quarterback Colin Kaepernick told the company he and others considered the flag to be offensive since it represents a time when slavery existed in the United States.

Nike Betsy Ross shoes. (Nike)

"Words cannot express my disappointment at this terrible decision. I am embarrassed for Nike," Ducey tweeted, saying today was supposed to the announcement of a major investment with the company in the state. "Nike is an iconic American brand and American company. This country, our system of government and free enterprise have allowed them to prosper and flourish."

Nike has made its decision, and now we’re making ours. I’ve ordered the Arizona Commerce Authority to withdraw all financial incentive dollars under their discretion that the State was providing for the company to locate here. 7/ — Doug Ducey (@dougducey) July 2, 2019

And finally, it shouldn’t take a controversy over a shoe for our kids to know who Betsy Ross is. A founding mother. Her story should be taught in all American schools. In the meantime, it’s worth googling her. 9/9 — Doug Ducey (@dougducey) July 2, 2019

Nike had shipped the shoes to retailers before asking for the product to be shipped back.

“Nike has chosen not to release the Air Max 1 Quick Strike Fourth of July as it featured the old version of the American flag,” a Nike spokeswoman said.