July 13, 2016

It’s official: Gov Martinez broke NM economy; State “tumbles” in pro-biz climate rankings

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Five years after Governor Martinez promised to make New Mexico’s economy great again, corporations already in the state now pay fewer taxes thanks to her huge corporate tax cuts, while New Mexicans pay more locally for everything they consume.

More than five years into an administration that touts its pro-business policies, New Mexico has dropped further than any other state in the annual survey of business climate by CNBC, the financial news network.

New Mexico’s business competitiveness “tumbled” 15 places to the the bottom 25% of states – putting us right between Alabama and Arkansas.

New Mexico ranked 36th in the country in 2012 when she first proposed the idea of giving corporations more money as a way to create more jobs. Today we rank 39th, and the recent drops are more significant than those simple numbers might seem.

CNBC explains it this way:

“The Land of Enchantment tumbles 15 places in our rankings to finish 39th this year.”Screen Shot 2016-07-13 at 8.13.23 AM

“Workers have been fleeing the state in droves since the boom died, and because we consider net migration in our Workforce category, New Mexico suffers badly. New Mexico lost some 27-thousand residents last year, according to the Census Bureau. It’s one reason the state finishes 42nd for Workforce compared to 16th a year ago.”

More than five years into an administration that touts its pro-business policies, New Mexico has dropped further than any other state in the annual survey of business climate by CNBC, the financial news network.

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Governor Martinez came to office promising to make New Mexico a great economy again, and on the economic front the Legislature has given her almost every tax break and incentive she has asked for to test drive her economic agenda.

Her 2013 corporate tax cut bill passed in the waning hours of the legislative session, prompting outrage from cities and counties whose income from shared state tax revenue plummeted by $26 million.  The Martinez administration allowed them to raise local taxes, however, to make up the gap and that meant that local taxpayers – working families – would have to pay more for daily goods and services to give big corporations (mostly headquartered out-of-state) bigger tax breaks to boost their already profitable bottom lines.

Take Intel for example.  Terri Cole, president and CEO of the Greater Albuquerque Chamber of Commerce, which lobbied for the effort, said in an interview “our primary focus was Intel.” (read more on Intel’s jobs cuts after receiving tax cuts)

But after receiving the tax breaks, paying less for their fair share of services, they laid of 11% of their workforce while still taking tax breaks generating profits for their international company’s bottom-line.

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