House Bill 6 Raises Taxes on New Mexicans by Half a Billion Dollars
Santa Fe – New Mexico’s $1.1 billion budget surplus isn’t enough for House Democrats as they have introduced a proposal to impose the biggest tax increase in state history. The centerpiece of the Democrats money grab, House Bill 6 (HB 6) would raise taxes on New Mexico’s families by nearly half a billion dollars. In addition to HB 6, Democrats are proposing increasing taxes on gasoline and food to continue to fund misguided Santa Fe priorities.
“They’ll call it an ‘overhaul’ or ‘new revenue stream,’ but they’ll never call it what it is: a massive tax increase,” said House Minority Leader Jim Townsend (R-Artesia). “I don’t know how supporters of this bill can look New Mexicans in the eye and say ‘a billion dollars wasn’t enough.”
The latest version of HB 6 comes with less than three weeks left in the legislative session and after House Democrats had to revise their first tax increase proposal. Supporters are saying the tax increase is “only” $323 million when in fact, when the local tax increases are included; HB 6 raises taxes on New Mexico’s families by $492 million. In the current version, HB 6 would raise income taxes on any single New Mexican making more than $26,500. Other tax increases in HB 6 include:
· An average 162% increase in vehicle registration fees
· An increase in the cost of purchasing a vehicle to raise $65 million
· Increase taxes on hospital services to raise $92 million
· Raise taxes on cigarettes to collect $20 million
“It’s absurd to give a much-needed raise to our teachers and steal the money right back in tax increases,” said Rep. Jason Harper (R-Rio Rancho). “Real tax reform makes the system fairer and ultimately grows the economy, this accomplishes neither.”
The latest massive tax increase proposal is just the latest effort to on the part of Democrats to get more money from New Mexico’s families. When the state was in a budget deficit, the solution presented by Democrats was also to raise taxes.