By Paul J. Gessing
Gov. Michelle Lujan Grisham is to be applauded for calling for rebates for hard-pressed New Mexicans. With an additional $850 million available to the State due to elevated oil and gas prices because of the Iran War, New Mexicans should receive some help from a state that remains more than flush with cash.
Rebates are a temporary, one-time fix that are needed in part because the next governor won't take office until January and the Legislature won't be able to pass rebates until the 2027 session which means New Mexicans wouldn't benefit until at least March of 2027.
The only problem is that Lujan Grisham's $250 proposal is stingy. Rebates of at least $500 per tax filer would make a difference for families hit by higher costs and it wouldn't even eat up the entire $850 million.
The Gov. should call a special session right away to get the process started.
What's ironic is that usually level-headed Democrat Sen. George Muñoz is so against the idea. The Chair of the Senate Finance Committee has called rebates, including a $600 rebate proposed by Republicans last session, "A waste of money." Muñoz should really look at New Mexico's government, which has seen spending jump by 75% in the last eight years, yet remains last in too many measures to count.
On the plus side, Muñoz told the Albuquerque Journal recently that he "favors paring back the state's personal income tax code as a way of easing the burden on New Mexico taxpayers." That certainly makes sense although it is worth noting that this is the first time Muñoz has spoken out in favor of significant tax cuts.
New Mexico has had significant budget surpluses on top of massive budget surpluses for much of Lujan Grisham's eight years in office and yet we haven't seen a single bill or even an op-ed or public statement from the Senator to the effect of wanting to cut New Mexico's income tax.
We welcome Muñoz to the "club" of those advocating for significant tax reduction and reform in New Mexico and are eager to work with him in the 2027 session to make tax reduction a reality for New Mexicans struggling to make ends meet and find good paying jobs in our State.
Of course, we have a little thing called an election between now and the next legislative session. Muñoz and his senate colleagues will remain largely the same albeit without "progressive" stalwart Peter Wirth as Majority Leader. The House is up for election as is the office of governor.
Republican Gregg Hull has made clear that he shares Sen. Muñoz's interest in tax reduction. He wants to eliminate New Mexico's personal income tax which would be both doable AND a huge shot in the arm for New Mexico families and businesses.
Neither gubernatorial candidate Deb Haaland nor speaker Javier Martinez, both of whom come from the "progressive" wing of the Democratic Party have said anything about tax reform or tax reduction of any kind. Haaland has also expressed skepticism of the Governor's push for rebates while Speaker Martinez has been quiet on both matters. Given their far-left leanings, neither Haaland or Martinez seem inclined toward rebates OR tax cuts next session.
New Mexico government tends to suck up money like a vacuum while leaving scraps for the private sector economy (including you and me). Will Lujan Grisham be able to call a special session and convince fellow Democrats to provide needed rebates for New Mexicans? Will Sen. George Muñoz be able to persuade more "progressive" members of his Party to embrace long-overdue tax reform? Only time will tell.
Paul Gessing is president of the Rio Grande Foundation, an Albuquerque-based think tank focused on the importance of individual freedom, limited government and economic opportunity
