The tax cuts heralded by Susana Martinez have cost the state more than $500 million during her stay as governor of New Mexico. What were they, how much did they cost, and what did we get for them? Research and Policy analyst Raphael Pacheco takes a look.
The last time voters decided to increase the distribution from the permanent fund was back in 2003. Even then, prognosticators warned that the move would “deplete” the fund. Back in 2003 the fund was worth about $7 billion. Over the next dozen years, the fund still managed to more than double. Here's why.
In reaction to the revenue shortfall that was created in large part by bad tax policy decisions, some lawmakers are looking to enact more bad policy. But sweeping up money from these special funds will endanger more than just common sense.
New Mexico In Depth--One thing, however, is crystal clear: the tax-cuts-for-jobs paradigm of trickle-down economics has been a massive failure. Tax cuts don’t create jobs for a number of reasons, but the two biggest are: taxes are generally a very small percentage of a business’ costs; and companies don’t hire more employees unless the demand for their goods or services has increased. Tax cuts to companies do not increase demand for their goods or services.
Santa Fe New Mexican--There has been a lot of talk about how to fill New Mexico’s disastrous state revenue shortfall. Taxing out-of-state online merchants for purchases made in New Mexico is a common-sense fix and past due. New Mexico’s small businesses have been at a competitive disadvantage for too long. Taxing food, however? There are other ways to create revenue that make more sense in a state with the second-highest rate of food insecurity among children. But the bigger issue is that New Mexico’s tax code needs a more fundamental fix.
When Facebook was considering New Mexico as a location for a new data center, the state started playing the "Let's Make a Tax Deal" game. Turns out that tax breaks are about as important to these kinds of decisions as is the risk of natural disasters. Which is to say, very low.
If you’re relocating a business that will need educated workers, would you set up shop in a state that’s made it more difficult to get a college degree? Or would you pick a state that makes educating their workforce a top priority?
While all Americans should feel welcome to enjoy our nation’s natural and cultural treasures, data show that racial and ethnic groups are less likely to view our national parks as part of their heritage and birthright as Americans. This makes them less likely to visit these places. There are many reasons for this, including a lack of racial and ethnic diversity within the NPS staff.
State government has a very important job to do. It ensures that all children receive an education that will prepare them to be productive adults. It works to keep our streets safe and our infrastructure in good repair. It must respond to public health threats and keep an eye to future needs. When state government does its job well, it enables and strengthens the state’s economic growth and helps its people thrive.
It seems that every week there is a new story in the newspaper showing the consequences of choosing tax cuts for the powerful over public investment. One of the most egregious, which has a huge impact on public safety, is the backlog of thousands of rape kits with DNA evidence that have not been processed.