Progressive groups say tax cuts not helping job growth in New Mexico

August 13, 2022

Santa Fe New Mexican: Progressive groups say tax cuts not helping job growth in New Mexico

Photo shows Santa Fe, New Mexico
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“As lawmakers begin exploring potential changes to New Mexico’s tax policies, experts with national left-leaning policy groups told them to keep one thing in mind — there’s little evidence the state’s tax cuts since 2003 have spurred substantial job growth.

‘Unfortunately, despite this very deep tax-cutting experience in New Mexico, it has really not worked to stimulate serious economic development in the state,’ Michael Mazerov, senior fellow with the State Fiscal Project of the Center on Budget and Policy Priorities, told lawmakers Friday. He spoke to the interim Revenue Stabilization and Tax Policy Committee.

Mazerov looked back at economic, educational, job-growth and quality-of-life data from 2003 to 2019 to determine how much influence those cuts — which started with a top rate cut from 8.2 percent to 4.9 percent — impacted economic and job growth.

Over that time, New Mexico only experienced 15 percent job growth in the private sector, he said. In comparison, neighboring Colorado, Arizona and Texas saw, respectively, 29 percent, 33 percent and 40 percent in job growth.

Rather than make drastic changes to the state’s tax codes, lawmakers should ‘invest in your long-term quality of life … early childhood education, pre-K and pre-K through 12 and then community colleges and universities, expansion of broadband and public health,’ said Greg LeRoy, executive director of the Washington, D.C.-based Good Jobs First.”

Read the full story at the Santa Fe New Mexican

Read Greg LeRoy’s full testimony given August 12, 2022 to the New Mexico Legislative Revenue Stabilization and Tax Policy Committee.