Phoenix trip a waste of time: we know why Arizona does better than New Mexico

A waste of time. That would be a good way to describe the “analysis” of a group that recently traveled to Phoenix to figure out why Arizona’s largest city (Phoenix) is so much more successful than New Mexico’s (Albuquerque). While the head of the Rio Grande Foundation has indeed been to Phoenix (and other parts of Arizona) many times, he didn’t need to take a trip to Arizona State University to figure out the situation.

Here are a few of many ways in which Arizona public policies or policy outcomes make Arizona a fast-growing, successful state that leaves New Mexico in the dust:

Arizona’s top personal income tax rate is 2.5% while New Mexico’s is 5.9%. Keep more money = attract more people;

Arizona is a “right to work” state. New Mexico remains “forced unionism” for private sector workers;

While it DOES have a high sales tax rate 8.38%, Arizona does NOT have a harmful gross receipts tax like New Mexico’s which is not that much lower;

Arizona has NO state-level prevailing wage law (New Mexico does). This means that public infrastructure projects in Arizona are done at market wage rates, not artificially inflated rates;

Arizona’s labor force participation rate is significantly higher than New Mexico’s meaning fewer people on welfare programs and more people paying taxes. New Mexico’s Medicaid population is also the highest in the nation which sucks money from other taxpayers and programs.

Because it is more business friendly Arizona has 10 companies listed on the Fortune 500 index. New Mexico has few publicly traded companies headquartered in the State.  

Arizona’s crime (while rather high) is nowhere near as high as New Mexico’s;

Arizona’s K-12 system has a variety of school choice options and outperforms New Mexico’s (which is dead last);

Arizona outperforms New Mexico even while spending 45% less money per student;

Despite the New Mexico delegation looking to further expand New Mexico’s higher education footprint as a means of “revitalizing” downtown, it is noteworthy that Arizona spends approximately 1/3rd what New Mexico spends (per student).