Some See Job-Creation Bill as Corporate Giveaway
Courtesy: New Mexico Voices for Children.
SANTA FE, N.M. - When it comes to HB 641, the Tax Omnibus Bill that Gov. Susana Martinez signed last week, the claim is that it will create jobs in New Mexico. However, State Sen. Gerry Ortiz y Pino(D-Dist. 12) said it is a short-sighted plan.
"The whole reason behind cutting the corporate income tax rate was to make New Mexico more competitive and more attractive," he said, "to send the message to businesses that want to relocate that we are a business-friendly state."
Ortiz y Pino is convinced the cut in corporate income taxes actually will not help much in that regard. He said the resulting increase in gross-receipts taxes and the decrease in money for education will together mean a less-than-friendly business climate in New Mexico.
Gerry Bradley, senior researcher and policy analyst, New Mexico Voices for Children, said the law will mean consumers pay the difference that corporations no longer have to pay. That means less money for public education and health services.
"Due to this bill, all local governments will have to decide whether they want to cut services," he said, "mainly policemen and firefighters and jails, or increase their gross-receipts taxes."
Bradley noted that the bill will not take effect for a couple of years and called on lawmakers to rethink the tax omnibus law.
"I would hope that the Legislature would take a deep breath and go back and look at this. They can change it or they can repeal it - especially the part about losing a quarter of the corporate income tax. This bill's going to cost $100 million in lost corporate income tax revenues each year," Bradley warned.
Bradley said it's time to get busy. OLÉ (Organizers in the Land of Enchantment) and Working America are looking to pressure the Legislature to change the law, he added.
The final version of the legislation is available at http://1.usa.gov/10HHMlp.