Evaluating Special Session Revenue-Raising Options
reportIn a special legislative session starting March 1, the New Mexico Legislature will consider a variety of revenue-raising options to close the state’s budget deficit. Some of the options under consideration—especially those approved by the state Senate earlier this year—would fall much more heavily on low- and middle-income families than on the best-off New Mexicans. By contrast, the House-approved tax plan includes a small income tax hike on upper income families that makes the House plan less unfair than the Senate plan. But, as this report outlines, both the House and Senate tax changes could be improved on through a variety of more progressive reforms to balance the state’s budget without unduly burdening low- and middle-income families.