Starting a conversation on taxes on the 1 percent

On Saturday night, March 11, 2017, I started a long overdue conversation on the floor of the House. For the past 14 years, New Mexico tried an experiment—we cut personal and corporate income taxes to see if jobs would flow into the state. The experiment failed.  Jobs and people left the state. Revenues tumbled. Schools, public […]

Starting a conversation on taxes on the 1 percent

On Saturday night, March 11, 2017, I started a long overdue conversation on the floor of the House. For the past 14 years, New Mexico tried an experiment—we cut personal and corporate income taxes to see if jobs would flow into the state. The experiment failed.  Jobs and people left the state. Revenues tumbled. Schools, public safety and infrastructure were decimated. And the tax burden rose sharply on lower and middle class wage earners.

Two states that have recently been in the news—Kansas and Minnesota—have both taken steps to fix the problem. In Minnesota, for example, personal income taxes were increased by 2 percent on the highest income earners, with dramatic results. Job growth is way up, the deficit has been eliminated and services have dramatically improved.

Daymon Ely is a Democratic State Representative from Albuquerque in House District 23.

I proposed a modest tax increase – a 1 percent increase in taxes on those individuals making more than $306,000. This means that for every dollar in net income over $306,000, the taxpayer pays one cent. The money will help pay for better schools, better paid teachers and public safety. The Republicans rejected the bill out of hand and defeated it on a technicality. Despite all the evidence in front of us, the Republicans continue to cling to the notion that somehow this will eventually work. It won’t.

Just to be clear, the idea of tax cuts generating jobs started as a bi-partisan effort. But now, 14 years later, we must admit that if tax cuts had worked, New Mexico should have been flooded with jobs. We cut personal income tax levels for the top 1 percent of wage earners by nearly one-half. We cut corporate tax levels as well. And instead of creating jobs and generating revenue the opposite has happened.

While arguing on the House floor for this modest tax increase, the Republicans proclaimed that it was the wealthy in our society that are the most productive, are the job creators and raising their taxes will cause them to move.

On these points, I could not disagree more strongly. Until I took this job as a legislator, I would have been considered part of the top 1 percent. I have friends that are part of the top 1 percent. We run small businesses. We hire local workers. We generate revenue for the state. I can tell you that most of us would agree to pay more in taxes if it meant that those dollars would lead to better services for everyone.

And as far as the wealthy being the most productive members of our state, tell that to the hard-working educators, construction workers, childcare providers, and so many more who keep our state running.

As for job creators leaving the state, our experience and that of other states, leads to the exact opposite conclusion. If we raise taxes and wisely spend the revenue on creating excellent public schools and a first-class infrastructure supporting businesses, good jobs will follow.

What will work and what will make our state better is quality, not tax cuts.

It has taken a long time for this conversation to start. Hopefully it won’t take as long for lawmakers to realize it is time to properly fund our schools, public safety efforts and roads.

We're ad free

That means that we rely on support from readers like you. Help us keep reporting on the most important New Mexico Stories by donating today.

Related

Lujan Grisham pocket vetoes two bills

Lujan Grisham pocket vetoes two bills

Gov. Michelle Lujan Grisham pocket vetoed two bills the legislature passed this legislative session: one changing the Cybersecurity Act and the other concerning law…
Gov signs bills with some vetoes 

Gov signs bills with some vetoes 

Gov. Michelle Lujan Grisham signed 69 bills that the legislature passed during the 2024 legislative session. These included the General Appropriations Act which contains…
Guv signs state budget

Guv signs state budget

Gov. Michelle Lujan Grisham signed the budget bill for Fiscal Year 2025 and the Capital Outlay spending bill. The FY25 state budget bill passed…
Advocates travel to D.C. to push for additional protections for the Gila River

Advocates travel to D.C. to push for additional protections for the Gila River

New Mexico advocates seeking to have the Gila River designated as a Wild and Scenic River will travel to Washington D.C. this week to…

NM Supreme Court annuls $10,000 penalty in PNM/Avangrid merger case

The New Mexico Supreme Court ruled on Monday that a penalty the New Mexico Public Regulation Commission levied against the state’s largest utility was…
State fines oil company more than $2 million after spill

State fines oil company more than $2 million after spill

The Energy, Minerals and Natural Resources Department fined an oil and gas company operating in the Permian Basin more than $2 million over produced…
Amid new graduation requirements, what do high schoolers want to learn?

Amid new graduation requirements, what do high schoolers want to learn?

By Margaret O’Hara, The Santa Fe New Mexican The main things that bring Brayan Chavez to school every day: Seeing, talking to and engaging with…
Special ed teachers hope lawmakers OK pay raises, admin changes

Special ed teachers hope lawmakers OK pay raises, admin changes

By Margaret O’Hara, The Santa Fe New Mexican Brittany Behenna Griffith has a laundry list of adjectives to describe the ideal special education teacher:…
Lawmakers must find consensus on competing education spending plans

Lawmakers must find consensus on competing education spending plans

By Margaret O’Hara, The Santa Fe New Mexican A challenging task awaits New Mexico lawmakers in the next 30 days: Reconciling three very different…
Lujan Grisham, Biden admin announce $10 million in federal funds for tribes, pueblos

Lujan Grisham, Biden admin announce $10 million in federal funds for tribes, pueblos

Gov. Michelle Lujan Grisham announced Friday $10 million in funding from the federal American Rescue Plan Act was awarded to six tribal nations and…
Proposal to curb executive powers moves to House Judiciary

Proposal to curb executive powers moves to House Judiciary

The House Government, Elections and Indian Affairs Committee discussed a potential constitutional amendment that seeks to limit the governor’s executive powers. The committee approved…
Supreme Court censures attorney over conduct in anti-COVID policy suits

Supreme Court censures attorney over conduct in anti-COVID policy suits

The New Mexico State Supreme Court censured a New Mexico attorney because of her “misconduct” in two unsuccessful cases pushing back on COVID-19 regulations…
Supreme Court to hear two abortion cases this spring

Supreme Court to hear two abortion cases this spring

Later this month, the U.S. Supreme Court will hear oral arguments on the case against the abortion medication mifepristone. It will hear a second…
How Biden, others highlighted reproductive rights at the State of the Union

How Biden, others highlighted reproductive rights at the State of the Union

President Joe Biden highlighted reproductive rights issues as part of his State of the Union speech Thursday. Biden delivered his 2024 State of the…
Stansbury invites OB-GYN doctor as her state of the union guest 

Stansbury invites OB-GYN doctor as her state of the union guest 

U.S. House of Rep. Melanie Stansbury has invited an OB-GYN doctor from Roswell as her guest for President Joe Biden’s State of the Union…
Supreme Court to hear two abortion cases this spring

Supreme Court to hear two abortion cases this spring

Later this month, the U.S. Supreme Court will hear oral arguments on the case against the abortion medication mifepristone. It will hear a second…
How Biden, others highlighted reproductive rights at the State of the Union

How Biden, others highlighted reproductive rights at the State of the Union

President Joe Biden highlighted reproductive rights issues as part of his State of the Union speech Thursday. Biden delivered his 2024 State of the…
Stansbury invites OB-GYN doctor as her state of the union guest 

Stansbury invites OB-GYN doctor as her state of the union guest 

U.S. House of Rep. Melanie Stansbury has invited an OB-GYN doctor from Roswell as her guest for President Joe Biden’s State of the Union…
See who’s going to be on your primary ballot in June

See who’s going to be on your primary ballot in June

Tuesday marked the official beginning of the 2024 New Mexico primary season for the legislature, with candidates officially filing for candidacy. This is the…

Bill to require disclosure of use of AI in campaign materials goes to governor

The Senate approved a bill aiming to require the disclosure of the use of artificial intelligence or other changes made by computers to campaign…
House amends, passes bill banning firearms near polling places

House amends, passes bill banning firearms near polling places

The House narrowly approved a bill that would ban firearms near polling places. The House voted 35-34 to pass the bill following an extensive…
Advocates travel to D.C. to push for additional protections for the Gila River

Advocates travel to D.C. to push for additional protections for the Gila River

New Mexico advocates seeking to have the Gila River designated as a Wild and Scenic River will travel to Washington D.C. this week to…
U.S. Supreme Court lets ban on Couy Griffin from holding office stand

U.S. Supreme Court lets ban on Couy Griffin from holding office stand

The U.S. Supreme Court declined to hear an appeal of a Republican official who was barred from holding office after being convicted for a…
Politics Newsletter: legislative leaders not running for reelection

Politics Newsletter: legislative leaders not running for reelection

Hello fellow political junkies! Candidate filing day has come and gone, and members of House and Senate leadership opted to either not seek reelection…

GET INVOLVED

© 2023 New Mexico Political Report