Legislative Session Update from NMBC

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Category: Your Business Connection Your Business Connection
Published: 04 March 2021 04 March 2021

Legislative Session Update
We've got some amazing legislators serving New Mexico. Some are focused on building our state and creating more opportunities for our people and some are focused on taking more of our earnings and growing government.

When you consider the impact of these policy decisions or focus, consider what the outcome will be to our state. The recent report from United Van Lines, COVID-19 Pandemic Influenced Decisions to Move, provides some interesting insight as to why people are leaving New Mexico. 72% stated their primary reason for moving was family or jobs. In addition, 70% of those moving are 55 or older and 57% have incomes of $100,000 or more.

What we might deduce from this is that NM is not a retirement destination (and we still tax Social Security). We're also losing the high income earners and you can see from the list of tax bills why that might be occurring. More concerning, however, is the fact that 85% of businesses pay taxes at the personal income rate which shows them as high earners and could mean we are losing entrepreneurs.

Focusing on taking more from us through higher taxation and growing government is bad for business, bad for the economy, and bad for the people who live here. It's disheartening to see others write negatively about New Mexico, but "Is this the dumbest state Legislature in the country?" is worth a read. This short article raises some interesting, but unfortunate points that are accurate and well documented.

With 16 days left in this legislative session, we're wondering how it will end. To add substance to the thought, we need to look at what has happened so far. With 895 pieces of legislation, there were far too many that are detrimental to our state and the people who live here. NMBC is writing letters and providing testimony on over 60 bills.

If passed, these bills would increase costs for businesses and lead to fewer job opportunities for New Mexicans. Everyone knows New Mexico is at the top of the bad lists and the bottom of the good lists and none of this bad policy will positively change those stats.