Contact: Erika Martinez
(505)986-4819
FOR IMMEDIATE RELEASE
December 18, 2013
RSTPC Endorses Tax Reform Bills Designed to Promote Transparency, Economic Growth and Local Graduate Retention
Santa Fe, NM — This week, the Revenue Stabilization and Tax Policy Committee (RSTPC) endorsed several pieces of legislation proposed by Senate Majority Whip, and committee member, Tim Keller (D-17-Bernalillo). Proposals included: implementing a tax expenditure budget, which will assist in evaluating the effectiveness of the current tax policy and allow greater transparency with regards to more than $1 billion in annual deductions; the Working Families Tax Credit; and the State Graduate Employment Incentive.
Sen. Keller spoke, taking a two pronged approach to budget tax expenditure bill. The first approach includes passing it as a constitutional amendment, which if makes it through the senate and the House of Representatives, it will bypass that governor’s office and will go to a public vote. The second approach mandates that a directive be given from the legislature to the Tax and Revenue Department to carry out a tax budget expenditure.
Keller’s newly proposed approach to tax expenditure comes as a result of past, failed attempts to pass the bill, despite modifications made to gain the Governor’s support. “These have been bipartisan measures. Attempts have been modified to appease the governor and still have been vetoed. It evaluates return on investment. We are never going to get that from the governor,” said Sen. Keller. “While it will be challenging, I think we can detain this matter. What do we do if we just can’t get this? How many committee meetings are we going to have, to have this conversation?”
According to Sen. Keller, the Working Families Tax Credit makes available an extra $30 million dollars over five years for New Mexicans needing financial assistance and small business owners kick starting their companies. The bill also provides an extra $40 million over five years in dollars for education by closing the capital gains loophole.
The State Graduate Employment Incentive creates a structure for companies to receive a tax credit for hiring New Mexico University graduates to full time positions that include benefits. “This will incent on-time graduation and the retention of our best and brightest students by in-state firms,” Sen. Keller added. “Funding for this program will be offset by the reduction in demand for lottery scholarship funds by students who take additional years to graduate due to the lack of available, local jobs.”
###