Analysis: the Ronchetti economic plan
New Mexico’s GOP gubernatorial candidate Mark Ronchetti recently released his economic plan. This comes on top of his recently-released rebate plan which is also included in this broader economic document (and is discussed in the link above).
You can find his full economic plan here and we’ll discuss the highlights from the RGF perspective below:
- The plan addresses New Mexico’s income tax structure with single filers having no tax burden up to $10,000 and married couples paying zero income tax on up to $20,000 of personal income. Currently the code is extremely compressed with most taxpayers paying 4.9% on much of their incomes, but under Ronchetti’s plan the 4.9% rate wouldn’t kick in until individuals make $80,000 or couples make $160,000.
- On the GRT, Ronchetti wants to eliminate tax pyramiding, eliminate GRT on “micro-businesses,” and reduce gross receipts tax rates every year. He also wants to end gross receipts taxation of rural doctors. Those are all ideas we have extensively discussed at Rio Grande Foundation and are much-needed.
- Furthermore, Ronchetti’s plan includes some kind of limits on annual government spending growth and demands voter approval of local GRT increases.
- Finally, Ronchetti’s includes a serious discussion about getting New Mexicans back to work. Not only does New Mexico have the nation’s highest unemployment rate (as it has for 7 months in a row), but we have terrible workforce participation rates.
There ARE some compromises. We’d like to see New Mexico’s top income tax rate dropped. If 4.9% was good enough for Bill Richardson, it should be good enough for us now. But, this is a good starting point. It is a plan that will need significant Democrat support in the Legislature at least if it is to be adopted within the first two years of a Ronchetti Administration.
