HB 275 to eliminate personal income tax (and other tax related bills) to be heard in committees

HB 275 which would eliminate New Mexico’s personal income tax immediately and completely will be heard in the House Taxation and Revenue Committee on Wednesday morning. This bill is one of the very best that will be considered in the Legislature this session. The PIT generates an estimated $2.1 billion annually for New Mexico so it is extremely odd to see the fiscal impact report place a $3.8 billion initial “cost” to the State’s coffers on the tax. Obviously, some amount of economic growth and diversification will generate tax revenues, but we’re not even talking about that. RGF rates this bill +8 (our highest ranking).

Anyway, we plan to testify and would encourage you to do so as well.

HB 184 would provide an annual $1,000 “rebate” to every man, woman, and child in New Mexico (not just this year, but for years to come).  The bill is being heard Wednesday morning in House Government and Indian Affairs. Perhaps the most interesting thing is that this bill is being sponsored by very left-wing Democrat Rep. Patricia Roybal Caballero.  RGF rates this +5.

The following bills are being heard in Senate Tax, Business and Transportation Committee tomorrow afternoon:

SB 20 would increase taxes on tobacco (see how much based on different types here). Tobacco taxes are highly regressive meaning they impact the poor the most. RGF rates this -6.

SB 89 would remove planned future tax hikes on cannabis. The current 12 percent cannabis excise tax rate would be maintained in perpetuity. RGF rates this a +3.