Senate Republicans Urge Interim Tax Committee to Consider Real Tax Relief for Hard-Working New Mexicans

Santa Fe, NM — Republican members of the Revenue Stabilization & Tax Policy (RSTP) interim committee recently sent a letter proposing much-deserved tax relief for New Mexico taxpayers.

Specifically, the letter asks that the committee consider providing a 'Citizens Tax Rebate' to every New Mexico taxpayer, funded by excess tax revenues the state collects. Instead of returning these dollars to the hard-working New Mexicans who contribute them, these excess revenues have instead been used to grow the state budget from $6.3B in FY19 to $11.4B for the upcoming FY27, a growth of nearly 81%. 

"We're certainly not seeing 81% improvement in our road conditions, in our education outcomes, or in the public safety of our communities," said Senator Gabriel Ramos, a Republican member of the Senate Tax, Business, & Transportation Committee. "If we're not going to use these tax dollars to improve the lives of New Mexicans in the areas they most need it, then let's simply put the money back in their pockets."

In addition to a tax rebate, the senators also proposed the outright elimination of the Personal Income Tax (PIT), a move which would help make New Mexico competitive with other states who do not impose a state income tax. A suggested alternative would be to offer targeted tax relief by expanding current exemptions for social security income, military salaries, and military pensions, as well as by exempting tips from taxable income.

"New Mexico's tax code has been left in the dust by recent improvements at the federal level, which is producing higher refunds for taxpayers," said Senate Republican Leader Bill Sharer. "Instead of growing government, we should be growing our economy. However, IRS data revealed once again this month that taxpayers are instead fleeing blue states like New Mexico due to their oppressive tax policies."

RSTP's interim work plan is slated to be discussed and adopted at its organizational meeting later this month, and the Senate Republicans will once again push for both targeted and comprehensive tax relief for New Mexico taxpayers.