March 1, 2017

Bill to tax top 1% moves closer to becoming law

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The proposal to tax the top 1% of New Mexico’s income earners and roll back some of the tax breaks they were given under the Richardson administration earned another win today.

Rep. Daymon Ely’s HB 201 passed out of the House Taxation & Revenue Committee this morning on a 7-6 vote. Rep. Ely took to Facebook to let people know how important this bill is to bringing tax fairness to our state:

Along with bringing some fairness back to the tax system, his bill would generate much-needed state revenue. As we reported last week:

According to the non-partisan analysis by the Legislative Council Service, [Rep. Ely’s]¬†bill would generate an estimated $27 million per year by 2021.

“For married individuals filing separately (SEP) with income over $230,000, the tax is $11,066 plus 5.9 percent of the excess over $230,000. For heads of household (HOH), surviving spouses, and married individuals filing jointly (MFJ) with income over $460,000, the tax is $22,132 plus 5.9 percent of the excess over $460,000. For single individuals (SNGL) and for estates and trust with income over $306,667, the tax is $14,747.17 plus 5.9 percent of the excess over $306,667.”

Rep. Ely’s bill now heads to the House floor. We’ll keep you updated on this important piece of legislation as it keeps making its way closer and closer to the Governor’s desk.

Rep. Ely after his win today.

If you think everyone in New Mexico should pay their fair share in taxes and support Rep. Ely’s bill, be sure to tell him thanks by adding your name below: