NM State Government Awash in Money; Tax Haul up by $672 Million
New Mexico state government is awash in money. So far this fiscal year, tax revenue to the state is up by $672 million over the same period last year, Gov. Susana Martinez announced Wednesday.
That represents a 13 percent increase in tax revenue through the first seven months of the fiscal year.
The increase includes personal income tax revenue growth of more than $50 million, or 18 percent, and corporate income tax growth of more than $18 million, or 66 percent, as well as gross receipts tax at more than $400 million, or 11 percent.
Additionally, through the first seven months of the fiscal year, revenues in most tax categories have increased significantly over the last year.
Martinez said in a news release that the huge increase in revenue shows that she did the right thing in vetoing tax increases of $350 million in April of 2017. Those tax increases were proposed by the Democratic-controlled state Legislature. When she vetoed the tax hikes, Martinez was roundly criticized by Democratic lawmakers as being irresponsible. On Wednesday, Martinez fired back at them.
“As we keep up the fight to reform our tax code, make our economy more competitive for jobs and investment – and veto EVERY tax increase – our economy is growing and families and businesses are taking home more money to grow, save, and invest for the future,” Martinez said. “Results like these – a growing and diversifying economy, increased tax revenue, and more – show why it is so important to keep fighting to make our state more competitive for jobs and investment.”
Martinez said that since that veto, New Mexico’s private-sector economy has created 10,000 new jobs. She added that today’s news shows that individual, corporate, and other tax revenues are up significantly – all while New Mexico now has a budget surplus of more than $300 million, along with strong cash reserves.
Martinez said that since taking office she has cut taxes and fees 57 times, and vetoed more than $1 billion in tax and fee increases on New Mexico’s taxpayers.
Martinez said she has repeatedly called on lawmakers to act to reform the state’s tax code to allow families and businesses to keep even more of what they earn. So far, those tax reform efforts have gone nowhere.