Tax Fairness and Budget Adequacy
The institution of government is the means by which we do things collectively that we could not do as individuals. One of the main functions of government—written into the Constitution—is to promote the general welfare by collecting revenue that is spent on public structures like schools, roads and bridges, and services like public safety, public health, and much more. How we collect and spend public money says a great deal about our moral objectives. Our tax and budget policies should be fair, responsible, and transparent, address income inequality, and generate sufficient revenues to support programs and services that improve our quality of life. Children and families should be a high priority in federal, state, and local budgets.
Featured Content
New Mexico’s Working Families Tax Credit and the Federal Earned Income Tax Credit
Tax credits for low- and moderate-income working families are a common-sense way to spur economic activity by putting money into the hands of consumers who will spend it. They have also been shown to improve health outcomes. These are just some of the reasons New Mexico should increase its Working Families Tax Credit.
Investing in a Healthier New Mexico: The Economic and Fiscal Benefits of the Medicaid Expansion in New Mexico
The Medicaid expansion, as part of the Affordable Care Act, has been very good for New Mexico. Not only are tens of thousands of New Mexicans able to access health care, the program has brought billions into the state that has created thousands of jobs, economic activity, and tax revenue. (Report)
Roadmap to a Stronger New Mexico
New Mexico’s unique cultural diversity, great natural beauty, and strong sense of community make it an enchanting and resilient state, but there’s more work to be done to achieve our full potential. Tax cuts for the well-connected have bled New Mexico of crucial funding for public programs in education, health care, and other services for children. Now we’re 50th in the nation for child well-being. It’s time to make New Mexico’s children and families the highest priority, grow good-paying jobs by investing in our people, and more. Check out our Roadmap to a Stronger New Mexico here.
Recent Publications
It’s Time to Repeal the Capital Gains Deduction
New Mexico gives a big, unnecessary tax break to those with capital gains income. This tax break allows people to deduct 40 percent of their capital gains income from their state taxes, meaning this unearned income is taxed at a lower rate than the hard-earned wages of ordinary New Mexicans.
A Guide to New Mexico’s Tax System
The taxes we all pay are how we fund the state’s programs and public services that benefit us collectively. They are how we build our roads, bridges, waterlines, electrical grids, and how we educate our children, advance public health, and uphold our laws. These programs and services form the foundation of our economy, enhance our quality of life, and pay dividends far into the future.
Recent Blog Posts
OMG! BLM’s O&G problem GIF-splained
New Mexico’s kids are getting short changed when it comes to funding for education and other important services. This gif-splainer breaks down why New Mexico is losing out on billions it could be using for an education moon shot.
How the Expanded Working Families Tax Credit Helps Your Community
This Labor Day, we're celebrating the expansion of the Working Families Tax Credit during the 2019 legislative session. The 70% increase in the credit will benefit more than 200,000 New Mexico families.
Recent News Coverage
Lawmakers propose smaller spending increases for tuition, early childhood programs
“Despite knowing how important early childhood programs are for children’s healthy development and success, the LFC proposal continues to short-change the ECCE programs that give all New Mexico children the chance to reach their full potential,” Jimenez said.
Most New Mexico Families Will Get Good News this Tax Season
In all, the tax package that was passed last year was a win for New Mexico families with children. It also protected revenue that we need for our classrooms, road repairs, and health care while still giving working families a much-needed break. There is still work to be done in 2020 to make the tax system fairer, but 2019 was a great start.
Current Initiatives
Fiscal Policy Project provides timely and credible analysis of budget, tax and related issues in New Mexico so we may educate lawmakers and advocate for an equitable tax system and responsible spending.
New Mexico Fairness Project is an alliance of nearly 40 small businesses and faith-based, advocacy and labor organizations calling for a balanced approach to the state’s taxation and budget policies.
State Priorities Partnership (SPP) & Economic Analysis and Research Network (EARN) are two national initiatives in which we take part. SPP is a program of the Center on Budget & Policy Priorities (CBPP) and includes 31 state-level groups nationwide. EARN is a program of the Economic Policy Institute (EPI) and includes 55 groups from across the nation.
Resources
A Basic Family Budget Calculator is an important tool in determining if a family lives in poverty, because the system currently in place to do that is completely outdated.
Federal poverty guidelines, which dictate whether a family is eligible to receive assistance such as Medicaid and Food Stamps, are tied to a formula that was created in the 1960s. It was based on what the typical family spent on groceries because that was a family’s biggest expense at the time. Today, necessities like housing, childcare and health care take up a far greater share of most family incomes than groceries. Not only do the guidelines not take these changes into account, they do not take into account regional differences in the cost of living.
Because the federal guidelines are so inaccurate, families are generally considered low-income when they earn up to twice (or 200 percent) the poverty level. This makes up for some shortfalls in the guidelines, but they are still nowhere near as accurate as a Basic Family Budget.
Click here to find out the minimum amount families need to earn in order to live at a basic, no-frills level in New Mexico’s cities and counties.