Tax Fairness & 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
Revenue We Can Rely On
In order to build a strong economy, New Mexico must be able to reliably fund the services – like education, health care, and public safety – that our families and businesses rely on. Our over-reliance on revenue from the boom-or-bust oil industry makes that impossible. Here are the top 5 reasons we must change. Updated October 2022.
New Mexico is Putting Families First in Tax Policy
Our state’s policy makers made a number of improvements to the tax code since 2019 that will help low- and middle-income New Mexicans, improve equity, and increase economic opportunity for our working families.
Tax Policy: A Powerful Tool to Advance Racial Equity in New Mexico
While we all contribute to the revenue the state uses to provide education, health care, public safety, and more, some pay a higher price than do others. Sadly, this inequity tends to fall on racial lines. Our state and national tax systems benefit those at the top (who are mostly white) while disadvantaging people of color. This report looks at concrete ways New Mexico can make our tax system more equitable.
Your Go-To Guides on How the State Collects and Spends Money
Our state’s tax system and budget are a reflection of what we value most and an illustration of the kind of communities we wish to create. Who pays taxes and how much, and how we spend and allocate that funding – basically, how we make our values a reality – are decided by the lawmakers we elect to represent us in Santa Fe. They create the annual budget that the state uses to provide services that benefit us collectively, like education and health care.
- Link to the full Guide to New Mexico’s Tax System or the executive summary
- Link to the full Guide to New Mexico’s State Budget or the executive summary
Recent Publications
Advocate’s Guide to the New Mexico State Budget
Advocacy Guide Designed as a companion to A Guide to the New Mexico State Budget, this guide is written for people who are interested in advocating for General Fund monies for operating and programmatic purposes.
A Guide to New Mexico’s Tax System: Executive Summary
Executive Summary 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. (Link to the full Guide to New Mexico's Tax System here)
Recent Blog Posts
Yes to funding sustainable, affordable housing
Santa Fe New Mexican--We support the proposed 3% tax because it’s a fair solution that asks those with plenty to help ensure all Santa Fe families and children have opportunities to thrive in the community they call home. The proposed 3% tax will generate an estimated $6 million per year to support working families in finding homes in Santa Fe, building wealth and raising their children here.
Census data shows us poverty is a policy choice
During the height of the COVID-19 pandemic, economic assistance policies like the expanded federal Child Tax Credit resulted in a record decline in child poverty. Now, with the end of COVID-era assistance, the nation saw a record increase in child poverty – clearly showing us that poverty is a policy choice.
Recent News Coverage
Heinrich, Lujan join call for tighter oil and gas rules on New Mexico public land
Carlsbad Current Argus--The letter was also supported by New Mexico Voices for Children, New Mexico Wild and the New Mexico Wildlife Federation, along with national groups like the Sierra Club and Earthworks.
Yes to funding sustainable, affordable housing
Santa Fe New Mexican--We support the proposed 3% tax because it’s a fair solution that asks those with plenty to help ensure all Santa Fe families and children have opportunities to thrive in the community they call home. The proposed 3% tax will generate an estimated $6 million per year to support working families in finding homes in Santa Fe, building wealth and raising their children here.
Programs, Coalitions & Networks
Economic Relief Working Group A coalition of several grassroots and advocacy organizations – many of them focused on immigrant rights – ERWG was formed in 2020 initially to secure pandemic relief for those New Mexicans who did not qualify for federal relief due to their immigration status. ERWG worked on getting an accurate 2020 Census count for the state, and has also worked on wages, voting rights, tax credits and child care assistance, and currently runs a guarantied basic income (GBI) pilot project for families with mixed immigration status.
New Mexico Fairness Project A coalition of more than 30 organizations, NMFP works to ensure that New Mexico collects tax revenue in a way that is equitable and sustainable, and that is adequate to fund the programs, services, and infrastructure that New Mexico’s children, families, communities, and businesses rely upon. Run by NM Voices, NMFP also fights for fair wages and working conditions, and other issues central to family economic security.
State Priorities Partnership (SPP), Economic Analysis and Research Network (EARN), and State Revenue Alliance (SRA) are three 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. A network of state-based community, labor, and policy advocates from across the country. SRA works with on-the-ground advocates, giving them the strategic resources they need to build intersectional, people-powered campaigns that transform revenue policy – ensuring our states fully fund communities and that corporations and the ultra rich pay what they owe.
New Mexico Civic Engagement Table A project of the Center for Civic Policy, NMCET unifies more than 40 diverse organizations from different sectors around a common agenda to strengthen our democracy. Among its issues are economic justice, early childhood education, climate justice, immigration reform, and economic development.
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.