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Developing a vibrant, diverse private sector economy is critical to getting New Mexicans back to work. While our national labs and large, multi-state corporations are important to our economy, 98% of New Mexico businesses are small or medium sized with less than 100 employees. To create jobs, policy makers must focus on our local businesses and give them the tools they need to grow and compete.
Key to the success of any small business is a fair tax code that lets it compete with the multi-state competitors down the street. Unfortunately, in New Mexico, our tax does the exact opposite.
Under the guise of “economic development,” we are the last western state that allows national chain stores to expense profits to other subsidiaries and avoid paying corporate tax. A mom and pop retailer pays its fair share, usually 4.9% as a pass through tax entity. Yet the “big-box” chain down the street can pay little or no tax.
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