New Mexico Voices for Children: NM’s Working Families Tax CreditsITEP Work in Action
As a group, those who claim the EITC and WFTC pay a large share of their incomes in taxes. In fact, in addition to the federal payroll taxes they pay, New Mexico’s lowest-income households pay a larger share of their income in state and local taxes than the households in every other income group. Those making less than $17,000 a year pay more than 10 percent of their incomes in state and local taxes. Meanwhile, New Mexicans who make more than $340,000 pay less than 5 percent of their incomes in those same taxes8 (see Figure IV). This huge disparity exists even after the current value of the EITC and WFTC are taken into account.