Two really bad bills in committee Wednesday morning: speak up now!

Two of the very worst bills before the New Mexico Legislature this session begin moving through their committees starting this Wednesday morning.

HB 37 is up in the House Tax Committee (find a list of members and emails here).

If adopted it would dramatically limit New Mexicans’ ability to deduct capital gains from the sale of homes, businesses, and stock. Under the current system, New Mexico taxpayers with capital gains income are able to deduct 40 percent of their net gain from their New Mexico taxable income. This is a positive feature of the state’s tax code as it promotes the creation of capital, which has been in short supply in the Land of Enchantment. HB 37 would limit a taxpayer’s net capital gains deduction to $2,500.

Businesses get into business to make money. New Mexico desperately needs a broader array of businesses to become economically-successful. There is absolutely no reason to adopt a tax hike of this kind, especially when New Mexico has such a massive surplus. 

Relevant committee emails below:

derrick.lente@nmlegis.gov,
Jason Harper <JasonHarperNM@gmail.com>,
Cynthia.Borrego@nmlegis.gov,
ambrose.castellano@nmlegis.gov,
Mark.Duncan@nmlegis.gov,
doreen.gallegos@nmlegis.gov,
joshua.hernandez@nmlegis.gov,
Larry Scott <lrscott52@gmail.com>,
Jim Townsend <jamesgtownsend@gmail.com>,
kristina.ortez@nmlegis.gov,
linda.serrato@nmlegis.gov

HB 6 is the other awful bill. This “paid leave”  bill (up in House Health and Human Services tomorrow members listed at link) would foist tax hikes on employees and employers alike (weather they want the program or not) to fund a paid leave scheme administered by the Department of Workforce Solutions.

Although no FIR is yet available for the bill this year, the analysis of last year’s version SB 11, expressed serious concerns about the viability of the fund. Such shortfalls would result in inevitable tax hikes on both workers and employers.

Relevant committee emails below: