Tuesday, January 31, 2012
Senate Release Tax Reform Initiative
Members of the Senate Democratic Caucus gathered today to discuss their ideas for tax reform proposed in this session. Senators Morales, Eichenberg, Fischmann and Wirth, as well as Majority Leader Sanchez laid out several bills that would make the New Mexican tax code more fair.
"We know we need to reform the tax code to make sure it is fair to New Mexico's small businesses and our working families," Senator Sanchez said. "We want to protect the mom and pop shops here, by making sure there is a level playing field with out of state corporations."
The three bills included in the first round of tax plans are SBs 9, 74, and 145.
Senator Peter Wirth introduced Senate Bill 9, and focuses on lowering the overall tax rate for businesses, and making sure that out of state corporations pay the same rate as in state ones.
"Its a win-win for New Mexico businesses," Senator Wirth said. "Senate Bill 9 creates one set of rules for businesses that pay the corporate tax. And, by broadening the tax base, we can lower the tax rate without impacting the state budget."
Senate Bill 74 is a bill that would reduce the gross receipts tax pyramiding on business to business transactions for professional services, and would pay for the change mandating combined reporting, a reduction in capital gains deduction, and an increase in the Motor Vehicle Excise Tax, and a repeal of the trade in allowance. Senate Bill 145 would maintain the three percent increase limit on property taxes, which would ease the burden on New Mexicans looking to buy a new home.
"These ideas that we are presenting are not the same old push for new revenue," said Senator Howie Morales. "We are serious about putting in place lasting tax reform that works for New Mexicans and holds corporations accountable."