Proposed Ronchetti tax plan discussed

Republican gubernatorial candidate Mark Ronchetti has proposed a tax plan that includes tax cuts that his main general election opponent says is not feasible. The proposed tax plan includes permanent tax cuts for middle and low-income workers, rebates from state income from oil and gas, economic incentives for businesses wanting to move to New Mexico […]

Proposed Ronchetti tax plan discussed

Republican gubernatorial candidate Mark Ronchetti has proposed a tax plan that includes tax cuts that his main general election opponent says is not feasible.

The proposed tax plan includes permanent tax cuts for middle and low-income workers, rebates from state income from oil and gas, economic incentives for businesses wanting to move to New Mexico and create jobs and a small business rescue plan.

The proposed plan indicates that all New Mexicans would receive $100 for every $1 billion in oil and gas revenues New Mexico receives.

“Right now the state of New Mexico has one of the worst tax structures in the country for small businesses and people from all over the political spectrum agree that it needs to change,” Ronchetti campaign spokesman Ryan Sabel said in response to an inquiry from NM Political Report. “The New Mexico State Government has never been richer, and [Gov.] Michelle Lujan Grisham has grown the government by 40 percent while our people are struggling to get to the end of the month. We have more than enough state revenue to give taxpayers back some of their hard earned dollars while funding necessary government programs. Reforming our tax structure will provide sustained economic relief for New Mexico families and businesses for years to come, which will create the long term economic growth our state badly needs.”

Ronchetti is challenging incumbent Lujan Grisham, a Democrat. Libertarian candidate Karen Bedonie is also running for governor. 

The Ronchetti plan cuts and rebates could cost the state about $2 billion every year, according to a former New Mexico Department of Finance and Administration Cabinet Secretary.

“Over four years, the plan costs $8.2 billion,” New Mexico Voices for Children Action Fund Executive Director James Jimenez said in a statement. “To put that into context, these cuts and rebates would be roughly equal to the current state budget, which is $8.4 billion. So, unless some magic happens over those four years, the state budget would have to be irresponsibly cut. The specific programs the legislature would have to cut are not some ‘black hole’ as Ronchetti suggests. Rather they are the very programs that people depend on like public education, higher education, health care, public safety, and environmental protection. These plans reflect little knowledge of how the state’s most essential services – education, public safety, and health care – are funded. It doesn’t take a budget expert to know that this plan can’t and won’t work.”

Jimenez was Gov. Bill Richardson’s Chief of Staff . While serving on the state’s Legislative Finance Committee, he served as Economist and Supervisor of the Performance Audit Unit.

New Mexico’s current state budget has $8.4 billion in its recurring general fund which includes public education, higher education, health and human services, public safety, commerce and industry, agriculture, energy and natural resources, judicial, general control and legislature.

General control includes funding for state entities such as the State Ethics Commission,  Border Authority, economic development, Public Regulation Commission and the State Tourism Department.

“The Governor has been in state government, she’s been a public servant for New Mexico for over a decade and she’s proven over the past four years how to pass an effective budget that increases funding for things that New Mexicans find the most important: education, health care, public safety,” Lujan Grisham’s re-election campaign spokeswoman Delaney Corcoran said. “She’s also been able to deliver tax relief and reform to help vulnerable New Mexicans.”

One of the tax relief efforts signed into law in 2022 by Lujan Grisham was House Bill 163 which changed things such as removing the tax on Social Security, cutting the state’s gross receipts tax rate and added a child tax credit.

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

Effort to challenge six laws enacted last year comes to an end

Effort to challenge six laws enacted last year comes to an end

Earlier this month, the New Mexico Supreme Court denied and dismissed the effort to challenge six laws enacted in 2023. The New Mexico Supreme…
Governor to call special session for public safety legislation this summer

Governor to call special session for public safety legislation this summer

Gov. Michelle Lujan Grisham announced that she will call the Legislature into a special session this summer to address public safety legislation that did…
Emily’s List endorses seven candidates for Legislature

Emily’s List endorses seven candidates for Legislature

Emily’s List, a nonprofit that supports women candidates and reproductive rights, endorsed seven incumbents facing general election opponents in New Mexico legislative elections. All…
NM receives $156M to boost access to solar

NM receives $156M to boost access to solar

New Mexico will receive millions in federal money to increase access to solar power. The U.S. Environmental Protection Agency announced recipients of the $7…
Two PFAS chemicals designated hazardous substances under Superfund law

Two PFAS chemicals designated hazardous substances under Superfund law

The U.S. Environmental Protection Agency released a final rule Friday to designate two types of PFAS chemicals as hazardous substances. Those two chemicals are perfluorooctanoic…
BLM finalizes controversial public lands rule

BLM finalizes controversial public lands rule

The U.S. Bureau of Land Management finalized its controversial public lands rule on Thursday. This rule is controversial because it allows for conservation leasing…
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…
Health workers fear it’s profits before protection as CDC revisits airborne transmission

Health workers fear it’s profits before protection as CDC revisits airborne transmission

Amy Maxmen, KFF Health News Four years after hospitals in New York City overflowed with covid-19 patients, emergency physician Sonya Stokes remains shaken by…
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…
Abortion fund provider rebrands and holds open house

Abortion fund provider rebrands and holds open house

An abortion fund provider unveiled a rebrand and offered an open house in Las Cruces to celebrate the organization’s new name, mission and values. …
Stansbury introduces judicial ethics bill on U.S. Supreme Court steps

Stansbury introduces judicial ethics bill on U.S. Supreme Court steps

U.S. Rep. Melanie Stansbury announced a bill on Thursday that would, if enacted, establish judicial ethics to the U.S. Supreme Court. The Judicial Ethics…
Politics and abortion, how much will it matter?

Politics and abortion, how much will it matter?

At the national level, abortion is still a high-stakes issue with both major presidential candidates talking about it in their campaigns, but it may…
Abortion fund provider rebrands and holds open house

Abortion fund provider rebrands and holds open house

An abortion fund provider unveiled a rebrand and offered an open house in Las Cruces to celebrate the organization’s new name, mission and values. …
Politics and abortion, how much will it matter?

Politics and abortion, how much will it matter?

At the national level, abortion is still a high-stakes issue with both major presidential candidates talking about it in their campaigns, but it may…
How the AZ Supreme Court decision on abortion impacts New Mexico

How the AZ Supreme Court decision on abortion impacts New Mexico

The Arizona Supreme Court ruled on Tuesday that an 1864 abortion ban is enforceable, throwing another state bordering New Mexico into the situation of…
Effort to challenge six laws enacted last year comes to an end

Effort to challenge six laws enacted last year comes to an end

Earlier this month, the New Mexico Supreme Court denied and dismissed the effort to challenge six laws enacted in 2023. The New Mexico Supreme…
Vasquez calls out Republicans for ‘inaction’ on border policy

Vasquez calls out Republicans for ‘inaction’ on border policy

U.S. Rep. Gabriel “Gabe” Vasquez, a Democrat who represents the state’s 2nd Congressional District along the U.S.-Mexico border, cosponsored a resolution on Monday calling…
Politics and abortion, how much will it matter?

Politics and abortion, how much will it matter?

At the national level, abortion is still a high-stakes issue with both major presidential candidates talking about it in their campaigns, but it may…
NM receives $156M to boost access to solar

NM receives $156M to boost access to solar

New Mexico will receive millions in federal money to increase access to solar power. The U.S. Environmental Protection Agency announced recipients of the $7…
Two PFAS chemicals designated hazardous substances under Superfund law

Two PFAS chemicals designated hazardous substances under Superfund law

The U.S. Environmental Protection Agency released a final rule Friday to designate two types of PFAS chemicals as hazardous substances. Those two chemicals are perfluorooctanoic…
New Mexico Voices for Children has new leadership

New Mexico Voices for Children has new leadership

New Mexico Voices for Children, an organization that focuses on tax policy and how it impacts children in poverty, has new leadership. Gabrielle Uballez…

GET INVOLVED

© 2023 New Mexico Political Report