During the past month, House Republicans have written two letters to the Governor requesting she call a special session of the Legislature to provide an opportunity to debate our proposal to repeal the state personal income tax. We believe at a time of expensive gasoline prices and the high inflation we have experienced for the past six years; New Mexico families and individuals need to keep more of their own money so they can pay their bills. In turn, we are convinced the best way to make everyday life more affordable is to end the state personal income tax once and for all.
An immediate repeal of the state personal income tax would dramatically increase the household incomes of lower and middle-class families. For example, for a family having taxable income between $25,000 – $50,000, they would see an average of $1,372 more per year in their pockets and for a family with taxable income between $50,000 – $75,000 their take home pay would increase by an average of $2,354 per year. Equally important, the repeal of the state personal income tax would provide a dramatic boost to New Mexico’s economy by placing more than $2.2 billion per year in people’s pockets, who, in turn, will spend and invest those dollars to create more jobs and economic prosperity for New Mexicans across all income levels.
With record levels of state revenues expected to continue over the next several years, New Mexico’s policymakers are being presented with a unique moment in history to do something bold and innovative. Repealing the personal income tax will usher in a new period of job creation and higher living standards that will undoubtedly expand hope for current and future generations of New Mexicans. These generations will be able to find good, high paying jobs and will result in our children and grandchildren no longer having to think about moving out-of-state to find work so they can take care for their families.
Of course, we have received no response from the Governor regarding our request. Instead, she has apparently instructed her Cabinet Secretary for the Taxation and Revenue Department to embark on a public relations campaign to criticize our proposal by playing the class warfare card. Instead of focusing on the many benefits repealing the personal income tax will create for all New Mexicans, she complains about how low-income families won’t receive as much tax relief as other families who pay much higher taxes. The Cabinet Secretary’s distorted logic means middle-class New Mexicans must continue to pay personal income taxes because low-income families are receiving tax benefits financed by those income taxes.
The Cabinet Secretary also states falsely how reducing state revenues will force vital state services to be cut. The truth is that even after eliminating the personal income tax, state revenues will still be more than $12 billion per year and all vital services, which are currently budgeted at $11.3 billion, will continue as before.
Progressive Democrats are always willing to tell hardworking New Mexicans how their money is really the government’s money and how the government is so much better prepared to spend it. Plus, progressive Democrats always try to manipulate people into thinking that keeping more of their own money so they can provide for their families is somehow selfish. We reject this political philosophy that government is entitled to more of the people’s money so government can redistribute the wealth it never helped create.
Instead, it’s time to make repealing NM’s personal income tax a reality and start providing all New Mexicans with a better and more prosperous future.
