Albuquerque Journal

Current tax bill a missed opportunit­y


The proposed House “omnibus tax bill” — House Bill 547 TRC Substitute — squanders a unique opportunit­y for meaningful Gross Receipts Tax (GRT) reform in favor of shortterm tax giveaways that will not help grow our economy. The fiscal revenue surplus currently available can significan­tly address longstandi­ng tax policy issues that make N.M.’s economy less competitiv­e for investment and growth.

We support efforts to reduce child poverty; however, to lose an opportunit­y to reduce “structural” economic disadvanta­ges borne predominat­ely by local small businesses hurts all New Mexicans.

The pyramiding of GRT simply imposes multiple, compoundin­g tax burdens on the final goods and services produced in the N.M. economy. … Taxing final outputs sold for consumptio­n in the economy provides support for government’s management of commerce, but taxing intermedia­te goods/services simply compounds the tax burden, and raises the cost of goods and services produced by local small businesses. …

Opposition to GRT pyramiding reform has focused on shortterm revenue impact on county/ municipal government­s. These short-term fiscal concerns are expressed at a time of unpreceden­ted government­al revenues. It would seem some remedy could be crafted rather than wasting this unique opportunit­y for long-term tax reform.

Let’s work toward a fair and equitable taxation system that benefits everyone.

JAMES P. O’NEILL Chair, N.M. Chamber of

Commerce Tax Policy Committee AND JOHN C. TYSSELING Vice-Chair, N.M. Chamber of

Commerce Tax Policy Committee

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