As expected New Mexico is approaching $1 billion in “new” money due to elevated oil prices

As reported in the Albuquerque Journal New Mexico is sitting on an unexpected $924 million in revenues thanks to elevated oil prices (due largely to the Iran War). While the Gov.’s call for small $250 rebates has been ignored by the Democrat-controlled Legislature, bigger tax reform hinges on the results of the upcoming election in November.  Deb Haaland shows no sign of returning money to taxpayers and will likely spend it or dump it into the permanent fund. Candidate Gregg Hull has said he’d like to eliminate the personal income tax. He has bipartisan support for that as Sen. Finance Committee Chair George Muñoz has also called for such a move, but AGAIN, the Democrats’ legislative leadership shows no signs of being willing to embrace broad-based tax reform efforts.

New Mexico collects $2.1 billion from the personal income tax annually. With nearly $1 billion in unexpected money available and an economy in serious need of growth and diversification even a phased in approach to income tax elimination with revenue triggers would be both desirable and possible. But, New Mexico’s “progressive” legislators have never shown an interest in broad-based economic growth or diversification. Changing that would grow the State’s economy and lift New Mexicans out out of poverty. November’s election will have a great deal to say about whether tax reform happens in New Mexico or economic stagnation continues amid an unprecedented oil and gas boom.