“Mainstream” tax Bill would raise income tax amidst massive budget surplus

Despite New Mexico having an unprecedented budget surplus the “progressive” Legislature seems hell-bent on raising YOUR taxes.

HB 119 which is being sponsored by the Chairs of the House and Senate Tax Committees AND the Senate Majority leader is one of the most concerning bills of the 2023 session. It also highlights the rapid leftward shift of New Mexico’s Democrats.

Back during the Richardson Administration New Mexico’s top income tax rate was dropped to 4.9 percent and as the Rio Grande Foundation noted, they were successful in moving New Mexico’s economy in a positive direction. 

HB 119 would create TWO new rates and would NOT index them to inflation, meaning that over time more and more New Mexicans would be pushed into them.

For Married couples filing jointly, the income tax rate is 4.9% up to income of $315,000. The rate rises to 5.9% after that.

Under HB 119 the new, higher top rate for married couples would move to 6.5% while kicking in at $200,000 and the 6.9% rate would kick in at $500,000.

The bill awaits hearing in the House Tax and Revenue Committee, but given the sponsors it must be of concern.