LWVNM believes that the tax system should be progressive and equitable, taking into consideration relevant differences in annual income. The tax system should generate adequate revenues to meet essential needs. Also, LWVNM supports transparency in the legislative process that allows citizen participation.
LWVNM urges the Legislature and the Governor to agree on a budget that fully funds essential government services. In order to do that they must enact sensible measures that draw revenue from those who can best afford it. We oppose cuts to essential services.
LWVNM opposes an increase in the Gross Receipts Tax on essential goods and services, especially food and medicine, because they would make the tax system less progressive.
LWVNM agrees with Governor Martinez and the legislative leaders that the tax system in New Mexico needs comprehensive reform. But comprehensive reform requires careful study in order to assure that it accomplishes the intended goals. New Mexico leaders made the mistake of rushing through legislation in the recent past and it has been a factor in our present budget crisis. In the closing hours of the 2013 session Republican Governor Martinez and Democratic House Speaker Kenny Martinez made a deal behind closed doors. That deal included a reduction in corporate taxes and a number of other tax giveaways to special interests, all of which have contributed to the present budget shortfall. The state should not repeat that mistake.