New Mexico Lawmakers Debate Tax Relief as Families Struggle With Rising Costs

New Mexicans struggling to keep up with grocery bills, gas prices and utility costs are at the center of a growing debate over how the state should deliver financial relief, KRQE reports.

The issue came up during a meeting of the Legislative Finance Committee’s Revenue Stabilization and Tax Policy Committee, where lawmakers reviewed how changes to the state’s tax structure could affect residents at different income levels and how much they might cost the state. Rep. Luis Terrazas, a Republican from Silver City, said inflation has hit older residents on fixed incomes hardest. “There’s old ladies that are on fixed incomes, all they’ve got is their Social Security,” he said during the meeting.

The debate is also playing out in the governor’s race. Republican candidate Gregg Hull has proposed phasing out the state’s personal income tax, and Republican Sen. Nicole Tobiassen of Albuquerque told KRQE the plan was a wise approach for struggling families. Rep. Derrick Lente, a Democrat from Sandia Pueblo who chairs the House Taxation and Revenue Committee, said the Legislative Finance Committee’s numbers suggested higher-income residents would benefit most from eliminating the tax. Democratic candidate Deb Haaland has proposed raising the minimum wage and increasing the child tax credit.

Neither approach would reach every household. Residents with little or no taxable income would see little direct benefit from an income tax cut, retirees on Social Security generally wouldn’t benefit from a minimum wage increase, and families without children wouldn’t get help from a larger child tax credit.