Download this fact sheet (updated Feb. 2019; 2 pages; pdf)

The Problem

  • New Mexico’s tax system is upside down—most New Mexico families pay more than twice the rate in state and local taxes than the wealthiest pay.
  • Recent federal tax changes made things worse by increasing state taxes on families with children.
  • New Mexico has one of the worst rates of child poverty in the nation.

Our hard-working families deserve better

The Benefits

  • Improvements in infant and maternal health1
  • Decreased poverty2
  • Reduced childhood hunger3
  • Better test scores4
  • Higher graduation and college attendance rates5
  • More earning power as adults6

1. David Simon, “Expansions to the Earned Income Tax Credit Improved the Health of Children Born to Low Income Mothers,” London School of Economics, June 9, 2015.
2. Chuck Marr, Chye-Ching Huang, and Arloc Sherman, “EITC and Child Tax Credit Promote Work, Reduce Poverty, and Support Children’s Development, Research Finds,” Center on Budget and Policy Priorities, October 2015.
3. Kevin Milligan and Mark Stabile, “Do Child Tax Benefits Affect the Wellbeing of Children? Evidence from Canadian Child Benefit Expansions,” American Economic Journal: Economic Policy, vol. 3, August 2011.
4. Raj Chetty, John N. Friedman, and Jonah Rockoff, “New Evidence on the Long-Term Impacts of Tax Credits,” Statistics of Income Paper Series, November 2011.
5. Michelle Maxfield, “The Effects of the Earned Income Tax Credit on Child Achievement and Long-Term Educational Attainment,” Michigan State University Job Market Paper, November 14, 2013.
6. Chetty, Friedman, and Rockoff, 2011.

This fact sheet is part of our Roadmap to a Stronger New Mexico initiative. Find out more and sign up for email alerts here.