What does it mean to be 16th?

According to a recent report from the Tax Foundation, New Mexico has the 16th highest combined state and federal “sales” tax. I use the parentheses advisedly knowing full well that New Mexico does not have a sales tax, but has a much more onerous gross receipts tax.

So, to say that New Mexico has the 16th-highest sales tax rate is accurate insofar as it goes, but our state taxes a lot of inputs that other states don’t tax. Gov. Martinez and the Legislature adopted some carve-outs this session, but as I wrote in this article, the gross receipts tax is a tricky tax to reform.

Instead, we’d like to see the tax restored to the low, flat, fair, “tax everything,” philosophy that could see rates as low as 3% and focus instead on reducing and/or eliminating the personal and corporate income taxes.

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3 Replies to “What does it mean to be 16th?”

  1. Well. we are run by a Democrat Legislature who love passing out vote buying entitlements. Since most of their constituency don’t pay Income taxes, somebody has to pay more. At least ‘sales’ taxes hit everybody.

  2. Tax welfare. Tax medicaid. Tax EBT cards. Leave us producers alone. We are taxed enough by the Democrat criminals in the legislature as it is.

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