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Wednesday, March 24, 2010

State Senate Majority Leader Michael Sanchez Calls Out Governor on Food Tax Reversal

SSANC State Senate Majority Floor Leader Michael S. Sanchez (D-Belen) released the following statement this afternoon after New Mexico Governor Bill Richardson vetoed legislation that would partially reinstate the gross receipts tax on the sale of food:

“I am surprised that the governor has decided to take this action. Had he indicated three weeks ago that he would not support the legislation we would have taken a different approach. He was involved every step of the way. At no time during the special session did he raise any objections. He was very clear about what he wouldn’t support which is why the legislative and executive compromise we crafted didn’t include an income tax increase or a requirement that all corporations pay their fair share of taxes.

“The governor’s veto today puts the state’s financial future at even greater peril. His approach to balancing the budget relies heavily on general fund reserves and federal stimulus money. While this may work in the short-term and carry him through the end of his term, these are one-time revenue sources. Unless the economy drastically improves, the next governor will have to take action to raise recurring revenue for our state’s budget or make cuts that will impair services to New Mexicans.

“This action is unprecedented in the state’s history. The legislature will look at all appropriate action if it determines the governor has overstepped his veto authority.”

March 24, 2010 at 05:14 PM in Economy, Populism, Food and Drink, Gov. Bill Richardson, NM Legislature Special Session 2010, Taxes | Permalink

Comments

I'm glad Richardson vetoed the food tax, but it was his fault it was on the table to begin with, as he refused to allow the legislature to consider the repeal of the income and capital gains tax cuts of 2003. He wasted taxpayers' money by calling the special session with so many restrictions attached.

Posted by: Ellen Wedum | Mar 24, 2010 10:18:23 PM

"Had he indicated three weeks ago that he would not support the legislation we would have taken a different approach."

Really? Are you sure? Probably not.

Posted by: ABQBear | Mar 26, 2010 9:54:06 AM