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Sunday, February 14, 2010

NM Senators -- Including Dems -- Decide to Tax Food (and Cigs) Instead of the Wealthy and Corporations

There are a number of Democratic State Senators -- both conservative and progressive -- who should be ashamed of themselves today. Contrary to the Party's long-time core value of supporting working and low-income people, a significant number of Democrats voted last night against valuable amendments to SB 10 -- the horrendous food tax bill. The amendments would either have improved the bill or added back some progressive tax elements. And then -- lo and behold -- EIGHTEEN of them voted to approve the so-called tortilla tax in all its regressive and punitive glory, regardless.

One defeated amendment, offered by Sen. Eric Griego, would have taxed all food, but provided a rebate for low-income families. This would at least have made the food tax a little more progressive, while simplifying the process that grocery stores will have to go through to mark each and every food item according to whether it's on the WIC list or not.

Sen. Griego also proposed amendments that would have decreased the capital gains exemption from an incredibly generous 50% to 25%, and raised the top income tax rate slightly. Sen. Peter Wirth proposed an amendment to implement "combined reporting" that would force big corporate businesses to pay taxes in the state just like small businesses do. More than a dozen Democrats voted with Republicans to defeat all three. I don't (yet) have their names, but I'm hoping someone will come forward and provide them.

Who Voted for Food Tax?
Unbelievably, even some "progressive" Democrats voted to tax the foods common to the diets of ordinary New Mexicans, Asians and working people -- in fact, most food items in the grocery store. The "tortilla tax" will be applied even to organic and brown eggs and other healthy items (see here). And yet enough Democrats embraced it for it to pass on a vote of 23-19

Remember, State Senators aren't up for election this year -- House members are. It will be interesting to see how House members react when the budget goes to the conference committee. The House, you may recall, passed much more sensible measures to deal with the deficit -- including a temporary hike in gross receipts taxes and the rates out-of-state taxpayers must pay. The Senate blew those away.

Let's look at the final vote in the Senate on SB 10. Here are the Senate Democrats who vote FOR the tortilla tax:

  • Pete Campos
  • Carlos Cisneros
  • Tim Eichenberg
  • DEDE FELDMAN
  • Stephen Fischmann
  • Phil Griego
  • Tim Jennings
  • Richard Martinez
  • Howie Morales
  • George Munoz
  • JERRY ORTIZ Y PINO
  • Mary Kay Papen
  • John Pinto
  • Bernadette Sanchez
  • Michael Sanchez
  • John Sapien
  • John Arthur Smith
  • David Ulibarri

Democratic Senators who voted AGAINST the food tax -- and should be THANKED -- were:

  • Mary Jane Garcia
  • Eric Griego
  • Tim Keller
  • Linda Lopez
  • Lynda Lovejoy
  • Cisco McSorley
  • Peter Wirth
  • Cynthia Nava
  • Nancy Rodriguez

Sen. Feldman's Take
Here's what Sen. Dede Feldman had to say about her vote, in an excellent run-down of what happened by Marjorie Childress of NMI:

“I came into this session thinking I’d never vote for a food tax, but I realized this could be the biggest boon to health in NM,” said Sen. Dede Feldman, D-Albuquerque. “This is a tax on salt, sugar, white flour and processed foods. ... [when] over 60 percent of New Mexicans are overweight or obese. Mothers will be cooking more and cooking from scratch. That is a good thing.”

Sen. Feldman has long been a true champion of progressive issues and ordinary New Mexicans, but I think on this one she is dead wrong. Could a comment appear to be more elitist, out of touch and holier-than-thou to ordinary New Mexicans than this one? For one thing, isn't it more than a little sexist to suggest that "mothers" will be cooking more from scratch? Not families, not fathers, just mothers. You know, like they did in the 1950s when mothers were at home and had the time to "cook from scratch."

Does Sen. Feldman really believe this is how modern society works for people who are scratching to keep their apartments, homes and bad-paying jobs with few benefits -- while trying to make sure their kids are fed? Does she believe mothers are just sitting there idle, refusing to buy and make the kinds of foods Sen. Feldman and the others have deemed "healthy" and proper? 

I think all the Dem Senators who voted for this bill should take a trip to the grocery store in downtrodden areas and talk to real people about the real economic and other problems they are facing thanks to the greedy and criminal actions of Wall Street, the big banks and our "investor class." This is the bunch who have reaped incredible amounts of cash and are not even being required to pay even a small share of taxes on their ill-begotten riches. No, let's tax the food of the workers -- and, hey, we can make them "healthier" in the process!

I'd love to see Sen. Feldman and Sen. Jerry Ortiz y Pino and all the other Dems who voted to TAX FOOD in a time of economic upheaval try working two miserable jobs to make ends meet and then come home to cook meals "from scratch." Why? To please the crowd that thinks people who are forced to survive on tortillas and beans, mac and cheese, spaghetti, hot dogs and canned soup are just so, you know, fat, ignorant and lazy. If they'd only listen to us, they'd be healthier for their dead-end jobs and help fix the deficits produced by all those tax breaks on the rich!

Dem Party Today
I've been a loyal Democrat all my life. I was raised by loyal Democrats among loyal Democrats and I know that those Dems I grew up with must be rolling in their graves. They'd be shocked, indeed, to see the spectacle of politically correct Democrats (nay, progressives) voting to tax the food staples of the working class at a time when huge numbers are barely able to feed their families anything, let alone the preferred foods of the high and mighty. And Democrats wonder why working and middle class citizens are voting Republican.

This is not the Democratic Party with democratic/Democratic principles that I grew up with. In my view, the votes of these Democrats represent the polar opposite of a Party that is supposedly dedicated to economically supporting ordinary, hard-working people. Unfortunately, they seem to represent a part of the Party that has lost all touch with working class realities, with working class problems, with working class values. Instead, too many Dems apparently are content to embrace the values of those with the most and mock the lifestyles (and eating habits) of those forced to live day to day and paycheck to paycheck to survive at all. I think it's tragic on a moral basis, and bad politics to boot.

Tax Cigs, Not Cigars
It was also mostly Senate Dems who voted to pass SB 30, a bill sponsored by Sen. Feldman that will slap another dollar-a-pack tax on cigarettes, by a margin of 24-18. That means the same people who are paying for the beloved S-CHIP health care program for children can pay even more, while New Mexico's mansion dwellers remain untouched by even the most minute tax increase. The topper? This taxes only cigarettes, NOT cigars or other tobacco products. That's right, folks. The big fat cigars of the big fat rich and politically connected cash cows can continue to be smoked without increased taxes in all those cigar bars and backrooms dedicated to their pleasure. I mean, if we raise any taxes on them, they may -- gasp -- leave the state! And you know, they make so many jobs ... or at least make a lot of big dollar donations.

Of course, Dem Senators were faced with a nasty choice -- either tax cigarettes (not cigars) or force state employees and educational workers to pony up another 1% of their pay into New Mexico's retirement funds. It was add another tax on working class smokers or cut pay for teachers and other state workers. And, besides, we know our Dems are always on the side of forcibly ensuring that workers live healthier lifestyles whether they want to or not. Food tax, cigarette tax -- in the same mold. Neither tax will impact many with big bucks in banks or invested on Wall Street. They remain immune.

My Question
Is it ever time to draw a line in the sand and state unequivocally that we will vote for NO tax, until there's an increase on taxes on the rich and corporations? No, our progressives get hoodwinked time and time again by being so easily forced into a situation where they have to choose between things like a food tax and cuts in education, Medicaid or pay for state workers. This will continue to happen unless they unite and pledge to do nothing until a once fair and progressive tax structure is repaired. Right-wingers know the progressives will always cave. So why should they ever give an inch? Yes, this tactic could be risky. But until we call the bluff of the Republicans and Conserva-Dems, we'll be stuck in this same quagmire year after year.

Hispanics Taxing Tortillas
Finally, check out all those Hispanic Senators who voted yes on the food tax, despite the vigorous opposition of the Catholic Bishops that allegedly stops many of these same Senators from voting for domestic partnerships. Voting to tax their fellow Hispanics on the very tortillas that have been the staff of life for so many? No problem! Could they get any more hypocritical than this?

February 14, 2010 at 12:38 PM in Business, Children and Families, Corporatism, Economy, Populism, Eric Griego, Faith Community, Food and Drink, Hispanic Issues, Jerry Otiz y Pino, Labor, NM Legislature 2010, Taxes | Permalink

Comments

Fischmann should be included among the progressive Democrats as well...

Posted by: Progressive | Feb 14, 2010 1:16:11 PM

In the dead of night, our people who we have elected vote for this regressive tax which will affect the poor more then anyone. the logic of the foods included and not included is senseless. the cost for this tax and implementation of it will be passed on to the people who can least afford it. it smacks of elitism.

Posted by: mary ellen | Feb 14, 2010 1:42:22 PM

Elitism at its greatest. Thanks for your words, Barbara. This we need to continue to be outraged about. This tax should not happen in New Mexico. We are the party of compassion - are we not?

Posted by: Dana Millen | Feb 14, 2010 1:50:36 PM

Where you see elitism, I see insensitivity and greed. Maybe they're the same in the end. How many of those senators who voted to tax tortillas, etc. make less than $100k per year? A tax on food is nothing to them. An income tax surcharge, OTOH, costs them directly, as well as the corporate fat cats they listen to.

I call on the House to stand their ground. Tax the wealthy by all means! Cut further exempt jobs. Slash UNM's VPs and athletic budget. Added taxes on sweeteners, all tobacco products, alcohol, and so forth are fine with me in the revenue mix. They are somewhat regressive, but they also produce a public health benefit. Heck, if you're talking about sin taxes, how about a surtax on gambling winnings? Across the board gross receipts taxes, taxes on food, and others that fall predominantly on the poor and working class are anathema.

When will we again ask upper income earners their fair share???

Posted by: Proud Democrat | Feb 14, 2010 4:28:35 PM

Looking at the evidence, the WIC standard has produced the highest number of obese children in history.

Posted by: qofdisks | Feb 14, 2010 5:03:12 PM

We won't get much out of the House. Lujan is in Big Bill's pocket, and BB doesn't want his rich friends inconvenienced.

Posted by: Ellen Wedum | Feb 14, 2010 5:09:35 PM

So many of the points that Barb makes are right on. Certainly Senator Feldman's answer does sound elitist to me as well. What I do see is the spectre of having Medicaid services cut since we were unable to get any tax increase through the Legislature and I think that is why she and so many of our Senators voted for the tax on food. Tax on food - or less funds for schools, children's health, etc. I would like to see the tax cuts of 2003 removed so we can go back to a prosperous New Mexico with our teachers not having to take a pay cut and our state government not having to lay off workers, etc.

The people who think that we can solve all of our financial problems by cutting our spending need to consider what life is going to be like when most every state office will be trying to perform their services with fewer employees. This will probably make the great news stories and the news will probably blame the Governor or all Democrats.

Terry Riley

Posted by: Terry Riley | Feb 15, 2010 8:41:12 AM

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