New Mexico has always been a big government state, but State government will grow massively in the years ahead as “progressive” Democrats benefit from an oil and gas boom while simultaneously raising taxes. A recent set of news stories from the recent meeting of the Legislative Finance Committee highlights the fact that New Mexico Legislators will benefit from $907 million in so-called “new money” when they convene in January.
Meanwhile, we found out from a separate news story that in 2021 New Mexico’s top tax rate will (likely) rise from 4.9% to 5.9%. That’s a 20% tax hike on top-earners! And, lest you think that is just a bunch of “fat-cat” rich people, according to the Tax Foundation nearly 70% of American businesses are “pass through” meaning they pay taxes under the individual tax code. That rate is likely even higher in New Mexico which has few big businesses and a relatively high proportion of small businesses.