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