The Decline and Unnecessary Fall of New Mexico
There are recent Journal stories about the vibrancy of the economy in Colorado and the obvious contrast to New Mexico. I have spent a fair amount of time in the Denver area in last couple of years and the boom is not limited to Denver but also in suburbs like Lone Tree and Centennial. Yes,…
Read MoreWho Benefits From the Food Tax Exemption
Brian McDonald and Chuck Wellborn A pending bill in the Legislature (HB 412) seeks to bring badly-needed reform to the state’s gross receipts tax (GRT) by removing ill-considered deductions and exemptions, thereby expanding the GRT tax base and enabling the GRT tax rate to be reduced. The latter is a well-recognized principle of state taxation—tax…
Read MoreNew Mexico Taxes and Economic Development
Brian McDonald, Lee Reynis, Jim Peach, Chuck Wellborn THE GROSS RECEIPTS TAX The State’s tax system has a major structural problem and it relates to the gross receipts tax. New Mexico enacted an Emergency School Tax in 1935 to fund public schools with a state-level sales tax. In most states, public education is funded with…
Read MoreTaxes and Economic Development in NM
Things are not good in the New Mexico economy. The job situation is desperate and getting worse. Worse, ten years of reduced state tax revenues from tax cuts is limiting the state’s ability to respond in a compelling fashion. What is being proposed? The Governor proposes the New Century Economy Jobs Agenda: a corporate income…
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