Combined Reporting IS a Tax Increase!

One wonders if Diane Denish understands what the term “tax increase” means. She is on record as saying she “didn’t see any scenario in which she would support a tax hike “over the next several years.”

Then, during the most recent debate which was held on Sunday, she stated that she favored “closing a tax ‘loophole’ (combined reporting) that would raise $70 million.” Sounds like a tax increase, right? Denish then went so far as to call the candidates’ disagreement on the issue “the defining moment” of the New Mexico gubernatorial campaign. I’ll agree with her on that one.

What this “defining moment” makes clear is that Denish is either not serious about her pledge not to raise taxes or she simply doesn’t understand the definition of the term “tax increase.” Of course, Denish MAY have some plan in her back pocket to offset the $70 million tax hike that combined reporting represents, that would make her plan a mere tax shift instead of a tax hike, but I have heard no plans to this effect.