Economic Equity

The Budget Crisis and Taxes

We are not the victims of a mad spending spree! 

 

The proposal to cut teachers’ pay is forced by maintaining tax cuts for the rich and corporations that operate big box stores.

 

It is being proposed that we cut teachers’ salaries - including higher education - by 2% and cut all public employee salaries as well.  There will still be a 200 million dollar gap.

 

We’re going to need revenue.  The issue is whether we’re willing to settle for that 2% cut, or whether we’re really going to get serious about reforming our system and go for the 500 million dollars in tax increases that would be necessary to avoid those kinds of cuts and put a solid foundation under the future.

 

We can afford to raise some personal income taxes. We’ve flattened out all the upper tax brackets so that everyone pays the same 4.9 percent.  There’s only one upper division tax bracket now.  Anybody over $26,000 a year (for a married couple filing jointly)  is paying the same rate as a couple making 2.6 million dollars.  That’s nuts!

 

We should re-institute some progressivity in our tax brackets,  so that the most wealthy people in our economy pay their fair share .

 

If we are just going to raise 200 million dollars that’s all we would have to do.  If we want to raise 500 million there’s some corporate tax loopholes that absolutely could and should be plugged.

 

We can eliminate the Big Box Loophole. Multi state corporations like Wal-Mart or Borders don’t report earnings, and aren’t taxed. Only Oklahoma and New Mexico do this.  As consumers, we spend lots of money that goes out of state.

 

The relatively low cost of living in New Mexico, compared with almost anyplace else will not change.  People attracted to move here will continue to do so and will help to lay a solid foundation for future sustainable prosperity. 

 

Additionally we ought to take a really close look at sin taxes.  Alcohol, tobacco, soft drinks, junk food.  All of those could be taxed without making a serious impact on working class families.  What we cannot do is re-institute the food tax.