Hiking the GRT a bad idea

Given all the tax hikes now moving through the New Mexico Legislature, we at the RGF have had to choose our battles. That said, having written extensively on the dire economic harm inflicted upon New Mexico’s economy by the gross receipts tax, I thought our political establishment would focus on reinstating the grocery tax or going after smokers, drinkers, and junk food or high-earning taxpayers.

Thankfully, our friends at the New Mexico Tax Research Institute have re-explained to New Mexicans that the gross receipts tax charged in New Mexico is much different, and much more economically-harmful, than a traditional sales tax. The article appeared in the Albuquerque Journal on Sunday and I couldn’t have said it better myself. Raising the GRT in today’s bad economy would further exacerbate the already-severe problems associated with this tax.