[LWVNM Action] Fw: NM Fairness Project: Tax Package Update

[Richard Mason]

 So there is room for some of the tax breaks to be added in the Senate.
Overall a good package.
Dick
   ----- Forwarded Message ----- From: Paige Knight <pknight at nmvoices.org>To: Bill Jordan (Yahoo) <billjordan7 at yahoo.com>Cc: Sarah Minor-Schaeuble <sminor-schaeuble at nmvoices.org>Sent: Tuesday, February 6, 2024 at 10:18:47 AM MSTSubject: NM Fairness Project: Tax Package Update
  
Hi all!
I wanted to send a quick update on what's happening with the tax omnibus package. Yesterday, it passed out of House Tax Committee as a committee sub forHB252(which was originally the bill to reform the personal income tax brackets) and will be heard next on the House floor before it heads over to the Senate. 
Here is the Fiscal Impact Report, which has a list of what is currently included in the package, along with the cost. 
We are very happy to see that the limiting of the capital gains is included, as is the flat corporate income tax rate. These two measures will increase revenue (~$80M) from the wealthiest individuals in New Mexico and profitable corporations, improving the fairness of our tax code and reducing our reliance on oil and gas revenues. The personal income tax bracket restructure focused on low- and middle-income households is also greatly appreciated (although we are disappointed that the restructure didn't also include new rates for higher-income households). 
The package now is scored at about $119M in the outyears, leaving room for the Senate to add some of their priorities and meet the $200M target. What's currently missing is some important climate protecting tax credits, but we believe those may become their own package because some are refundable, and the legislature does not want to include those in the tax package because that could open it to being vetoed again by the Governor. 
Please feel free to each out if you have any questions!
Thanks everyone!
Voices team  
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