Governor surprises with sweeping line-item vetoes in tax bill (Dem NM gov becomes fiscally conservative with vetoes)

The Piñon Post ^ | April 7, 2023 | Renato Costa

[CedarDave]

On Thursday, Democrat Gov. Michelle Lujan Grisham delivered New Mexicans a major surprise by vetoing major portions of the Democrats’ tax package, H.B. 547, which is seen as a big win for fiscally responsible legislators.

According to one report, Lujan Grisham “struck from the bill a phased-in reduction of the tax New Mexico consumers pay on most goods and services, a 20% alcohol tax increase, an electric vehicle tax credit and changes to the state’s personal income tax system aimed at benefiting low-income residents.”

The governor also vetoed a 25% tax on cigars, which lawmakers argued would make a $10.00 cigar $12.50, creating a “black market” for the products by bringing them in from other states, as Rep. John Block (R-Alamogordo) noted.

Portions of the bill that remain intact include $500 one-time tax rebates for single filers and $1,000 for married, as well as an expanded child income tax credit of up to $600 per child.

A fiscally irresponsible measure left in the bill includes additional film production tax credits, which critics argue will mostly benefit large production houses out-of-state that will hire temporary workers in New Mexico while continuing to keep post-production out-of-state in the Los Angeles area.

Another bad portion of the bill that she vetoed is a reduction of capital gains deductions. ... With the measure no longer being in the bill, it is a relief for New Mexico business owners and those who sell assets.

A provision Lujan Grisham struck from the bill, despite previously advocating for it, was a gross receipts tax deduction from 4.875% to 4.375%. She vetoed it.

The governor wrote in her veto message, “Given the unpredictable nature of the economy and our state’s reliance on oil and gas revenues, I am not confident this package is fiscally responsible.”

[CedarDave]

Click on the link for specifics on the capital gains provisions.

[CedarDave]

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[joma89]

Who cares. New Mexico is now positioned to be the baby murdering capital of the US.

[Moorings]

She is angling to become the “moderate” running mate of whichever commie rat the democrats throw up next.

[dfwgator]

I thought she was going to be Biden’s Running Mate in 2020.

[rktman]

Okay, where is the real michelle?