New Mexico “progressives” both in and outside the Legislature love to talk about the “regressive” nature of New Mexico’s tax system. Even the Rio Grande Foundation acknowledges that New Mexico’s state and local tax system takes a higher proportion of poor peoples’ earnings than wealthier peoples’.
The folks at Wallethub have put together a new report which considers state and local tax burdens for high and low earners by state. The findings are enlightening. New Mexico’s low-income workers DO pay a heavier burden (41st which is heavy) according to the report. You can see the data for yourself on the maps embedded below or in the full report linked above.
Interestingly, New Mexico’s high income folks aren’t getting away with anything. Their burden is 28th (so states 22 states have heavier tax burdens).
When it comes to New Mexico’s neighbors Colorado and Utah have low burdens on low-income workers, but the rest of our neighbors have similar, high burdens. When it comes to those with high incomes all of New Mexico’s neighbors (aside from Oklahoma) perform substantially better than does New Mexico.
Rather than raising taxes (as Democrats wish to do this session), it seems like ALL New Mexicans would benefit from lower tax burdens.
The following map shows how New Mexico stacks up for low-income earners:
Thank you. I have forward this on to people.
Leave, not worth remaining. Advise against moving business here or remaining here. Definitely not retiree frienndlly.