Financial Insecurity – New Mexico’s Epidemic

The Problem and Solution

There is one indisputable fact in New Mexico today – our families are struggling financially. The costs of auto insurance, property insurance, and health insurance have all increased significantly. Groceries that we could once afford now seem like luxuries. Many “everyday purchases” are now made with credit cards, which will be paid for later. Merriam-Webster defines “epidemic” as an adjective meaning “affecting or tending to affect a disproportionately large number of individuals within a population, community, or region at the same time.” It is safe to say New Mexico’s poverty level has reached epidemic proportions.

Recently, my husband and I bought our weekly groceries. We are a family of three – me, my husband, and our toddler. We purchased our regular items; we did not purchase caviar or filet mignon. I was astonished to learn that our grocery bill – for a less-than-full cart – was $600! As we reflected, I asked my husband, “How are single moms, single-income households, and people with large families making it?”

As I talk to New Mexicans, it is clear that we need financial relief NOW. That is why, in this upcoming Legislative Session (beginning January 21, 2025), I will introduce a bill to eliminate New Mexico’s tax on income. As you look at your paycheck, imagine what your family could do with the state income tax money currently withheld from each paycheck. For many of you, that would result in hundreds of dollars back in your pocket each week.

I have discussed this proposed bill with many of my colleagues in the Legislature. Sadly, some have expressed pessimism. Let’s take the time to answer the negative voices in the room.

I have heard, “Eliminating income taxes is too radical of an idea.” Did you know that currently, nine states have no income tax: Texas, Alaska, Florida, Nevada, New Hampshire, South Dakota, Tennessee, Washington, and Wyoming? New Mexico competes directly with these states for workers, and the factor that often determines where a worker will locate their family depends on the tax structure in a state. New Mexico desperately needs doctors, mental health professionals, public safety professionals, construction workers, and many others. Our tax structure should not deter workers from relocating their families to New Mexico or cause our current workers to leave for other states.

I have also heard, “The State will lose programs if we eliminate the income tax.” Did you know that only around 15% of the State’s income is derived from income tax? Newsflash: New Mexicans cannot afford to “stash money under their mattresses.” In most cases, the money saved would be used to buy necessary goods (including groceries), in turn producing more GRTs for the State. With so little of the State’s income coming from income taxes, there is no reason for any State programs to be cut.

I have also heard, “Eliminating income taxes will cause New Mexicans to lose income tax rebates.” Under my proposed legislation, families that qualify can still apply for tax rebates and credits.

So, where do we go from here? In this 2025 legislative session, I will introduce a bill to eliminate New Mexico’s income tax. I do so with the thought of you and your families in mind. Many of our parents come from large families raised on beans, rice, and tortillas. My father (the Sena family) came from a family of 12; my husband’s father (the Cortez family) came from a family of 7; and my husband’s mother (the Castillo family) came from a family of 8. Sadly, survival for tradition-rich families like these looks much different today than it looked 50 years ago, which is tragic given that our State has experienced record revenue growth in 2024 (an increase of 12.5%, or $1.45 Billion, from 2023).

I encourage my Democrat and Republican colleagues in the New Mexico Legislature to support my proposed legislation to eliminate New Mexico’s income tax. Financial insecurity is an epidemic plaguing New Mexicans; the good news is that we have a cure. Financial insecurity is not a political issue, it is a fundamental human issue. It is time to put our political weapons down and restore our people’s faith in their government – even if it is only on this single important issue.