As we get closer to primary elections, you’re going to hear two stories about taxes.
Story No. 1: New Mexico’s taxes are a dreadful burden on its citizens. Story No. 2: New Mexico’s big corporate tax giveaway in 2013 has eroded the tax base so much that revenues have plummeted and responsible public officials must raise revenues.
First, we’ve heard scare stories about our tax burden for years, and for just as long various studies have told us that we’re actually middling.
This year, WalletHub said New Mexico ranked 27th in state tax burden as a percentage of personal income. Our gross receipts tax burden is fifth highest in the nation. But the total tax burden, of 8.67 percent, is far lower than New York (13 percent), Hawaii (12 percent), and Maine and Vermont (11 percent). The lowest was Alaska, at about 5 percent.
On the other hand, WalletHub placed New Mexico 41st in the return for taxes paid. This is based on 20 categories of education, health, safety, economy, infrastructure and pollution. We took a big hit for our sorry economy. Yes, you can hold elected officials responsible for the ranking and the economy. Colorado’s return on investment was third, Texas was 15th, and Arizona was 19th.