Thursday, February 23, 2012
Governor Martinez, Can't You See the Elephant in the Room?
From ProgressNow New Mexico.
"We can do so much more to level the playing field for our small businesses, to put more New Mexicans back to work."
-Governor Susana Martinez, 2012 State of the State Address
Earlier today, Governor Martinez signed into law her self-described "Major Tax Reform Package" that benefits her campaign donors while costing state and local governments $50 million per year in lost revenue. Noticeably absent from this "major" package of bills is SB9, the bi-partisan legislation that would lower the tax burden on all of New Mexico's most successful businesses.
SB9 is now the infamous "elephant in the room," as it represents the most common-sense measure to level the playing field for New Mexico businesses, but is one the governor has yet to sign. SB9 would close the egregious tax loophole that allows "big box" stores like Best Buy to pay a lower tax rate than established local businesses like Baillio's. Unlike the bills Martinez signed today, SB9 is a revenue neutral bill that would reward our most successful businesses by lowering their corporate income tax rate, thus allowing them to create new jobs and invest in our local communities.
Instead of ensuring local businesses have a fair marketplace in which to compete, the tax bills Governor Martinez signed today will reduce taxes exclusively for the construction and manufacturing sectors, two industries that contributed almost $900,000 to Martinez's gubernatorial campaign. These contributions included more than $350,000 from home builder Bob Perry, her single largest individual donor.
"The legislature gave the governor the tools to reward every successful New Mexico business, not just those who can afford to give the biggest political donations. Let's hope that the governor does the right thing and signs SB9 into law as part of her next tax reform package," says Pat Davis, Executive Director of ProgressNow New Mexico.