Tax changes bring relief to N.M. families

In this year’s legislative session, I was proud to co-sponsor House Bill 6, which begins the process of transforming our outdated and unfair tax system.

Among other things, HB 6 invests in New Mexico’s families by providing much-needed tax relief through targeted credits and incentives. House Democrats ensured that large corporations and those at the top pay their fair share, while also putting money back into the pockets of New Mexico’s working families. Expansion of the Working Families Tax Credit, as well as an important fix to President Donald Trump’s punitive tax measures, are now the law of the land. These changes will be crucial to lifting up thousands of New Mexico’s families out of poverty.

This past tax year, thousands of New Mexican families felt the brunt of the president’s tax law which penalized families with children by eliminating the dependent deduction for families with more than two dependents. This forced the burden of an unfair federal tax law onto the backs of New Mexico’s families. New Mexico House Democrats led the charge to fix this problem and will now put $26 million back in the pockets of families with children. This fix will create a more equal and fair economy where everyone has the opportunity to succeed. While we cannot change the president’s unfair tax law, we can ensure that New Mexico’s tax system helps working families gain more financial security and prosperity.

Likewise, the expansion of the Working Families Tax Credit from 10 percent to 17 percent encourages and supports working families, reduces the use of public assistance, and helps families afford the cost of necessities

like health care, reliable transportation, and child care.

The credit applies to people who earn income, most of them raising children, and all of them paying taxes. But this credit isn’t just good for families — it’s good for all New Mexicans. Families will receive an additional $164 every year, per child, to spend on child care, groceries and gas. Families across the state will have more money to put right back into our economy and more opportunities to get ahead.

House Bill 6 is the first step in a multifaceted approach to overhaul our outdated tax system. For far too long, New Mexico’s tax code has been eviscerated by politicians of both parties in the name of “economic development” and on the backs of working families. And while promises of economic prosperity have not materialized, the burdens on middle-class families have never been heavier.

I look forward to working with legislators from both parties to modernize our tax code so that it is smart, fair and targeted. We must prioritize a tax system that serves the needs of New Mexico’s families, while at the same time foster a new era of economic growth and prosperity. These two foundational concepts are not mutually exclusive. We can provide both tax relief to our working class and make New Mexico the best place in the nation to do business.

We’re committed to a New Mexico where every family — regardless of ZIP code — has a shot at success. New Mexico’s future has never been brighter.