The League of Women Voters of New Mexico believes that a fair tax must be

1. equitable, taking into consideration relevant differences between persons, such as their annual income
2. certain, not arbitrary
3. convenient with respect to timing and manner of payment
4. economical to collect
5. adequate to finance the essentials of government.

The tax system in New Mexico should be progressive. LWVNM may support taxes that are regressive if it is determined that the tax will achieve a socially desirable objective.

In evaluating the average burden of taxation within the state, taxes should be compared with income of New Mexico residents; in comparing the burden of taxation in New Mexico with the burden imposed by other states, state and local taxes should be combined.

Tax credits and/or deductions should be evaluated based on promotion of equity and the efficiency with which they achieve their purpose. (this is why we support sunset clauses that require credits to be reviewed regularly)

Tax credits may be a means of providing relief from the regressive nature of the sales and property tax.

The League believes it is the state's obligation to collect revenues to fund services that are generally state responsibilities, rather than depend on cities and counties to raise the funds.