While some on the left claim that Gov. Martinez’s tax cutting strategy has “failed,” the reality is that the corporate income tax reductions enacted a few years ago are only partially phased in as seen in the above map provided by the Tax Foundation.
As the map clearly shows, New Mexico’s corporate income tax rates remain the highest in the region.
Of course Winthrop Quigley of the Albuquerque Journal is correct in noting that tax cuts alone, especially temporary gimmicks enacted by business-unfriendly New York, won’t turn around the economy by themselves. Quigley fails to discuss what regulatory reforms (like Right to Work) might be able to actually reform New Mexico in the absence of tax cuts, but just because tax cuts are not a panacea doesn’t mean they can’t help spur economic growth.