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Wednesday, January 26, 2022

SS Tax Repeal Takes Committee Hit In Early Going; Panel Rejects Income Tax Break For Seniors But Gives One To Retired Vets; Fair Play? Also: GOP Redistricting Suit Gets Prominent Dem Backer And Rep. Stansbury Catches Covid 

Rep. Alcon
It's a setback but not an outright defeat of that nationally-watched legislation to repeal the state's tax on Social Security. That's the word from Roundhouse watchers who saw the repeal stall out in the House labor and veterans' committee on a 4 to 4 tie vote Tuesday. 

The tax break is politically popular, so much so that it was one of the few bills MLG made mention of in her State-of-the-State speech. The problem? That was summed up by Grants area rep and committee chairman Eliseo Alcon, one of four Dems who voted against the bill as three R's and Dem Rep. Migel Garcia voted in favor, He declared:

All we’re doing is helping those that have money.

He's kinda right. New Mexicans with incomes of less than $25,000 don't pay any personal income taxes (about $28K for single seniors). And if there is no income cap included in the bill it would be an unnecessary tax break for wealthy seniors who don't need it and exacerbate the income inequality Rep. Alcon worries about. 

Alcon says the state would be better off giving tax rebates with the $118 million the SS repeal would cost. The retort he's hearing is why can't the state do both as it frolics in a surplus of $1.6 billion that is likely to go even higher as oil prices have jumped to over $80 a barrel. 

Senate Majority Leader Peter Wirth has said he would like rebates for lower income taxpayers. The time has come to show the money and the critical income range for those who would get the cash. And to make a difference that means well above $25k a year incomes.

Meanwhile, one of our Roundhouse Gators points out the best way to revive the stalled SS cut:

Joe, this bill was not going to be the major one--not with four Republicans sponsoring it including Republican Governor candidate Rebecca Dow. The bill still in play is sponsored by (ABQ Dem) Sen. Michael Padilla and specifically mentioned by MLG. Keep an eye on that. And if the Governor and Speaker Egolf want this cut they need to send the bill to the House Commerce Committee--not back to the labor committee graveyard. 

Got it. So as with Sen. Wirth and the rebates, it's time for Sen. Padilla to show his stuff. 

SPOTTING INEQUALITY

While the labor panel was reluctant to give seniors a tax break that was not the case with retired veterans as they passed a proposal that would exempt up to $30,000 of their military retirement pay from the state income tax. 

Why are they getting better treatment than many of those Social Security recipients who have worked a lifetime in jobs that don't come with cushy retirement plans like the military? 

Uh, Rep. Alcon, we just spotted that income inequality you are fretting over. (You're welcome.)

JENNINGS JOINS SUIT

Tim Jennings
It's not only Republicans challenging the legislature's congressional redistricting maps in the lawsuit filed by the state GOP. Former longtime Dem state Senator Tim Jennings of Roswell has added his name to the suit, saying placing a piece of Roswell in each of the state's three congressional districts is wrong. 

Jennings, who once served as senate president pro tem and was defeated for re-election in 2012 after 34 years in the senate, is running for mayor of Rowell against Republican Mayor Dennis Kintigh in the March city election. 

Jennings' friends are concerned that being a Democrat--even a conservative one like Tim--could spell his doom in uber-Republican Roswell. Consultants for Jennings feel that notion has yet to take hold and that being part of the redistricting lawsuit could remind R's that Jennings can work with both sides of the aisle--as long as they are conservative sides. 

CONGRESSWOMAN GETS COVID

Rep. Stansbury
ABQ US Rep. Melanie Stansbury announced on Facebook last night that she has been stricken with Covid. She described the illness as a breakthrough case and said she was advised to quarantine from home after having "respiratory symptoms."

Thankfully, I am vaxxed and boosted and able to quarantine from home. Deeply grateful to our health care workers working on the front lines every day. Please stay safe, get vaccinated, and take care out there!

The US House is in a "district work period" this week and not meeting in DC. Stansbury had been scheduled to attend a news conference Thursday morning with ABQ Mayor Keller and others to announce infrastructure improvements to the ABQ Sunport. 

Stansbury is the youngest member of the state's five member congressional delegation, turning 43 on January 31. She won her seat in a June '21 special election to fill the vacancy left by Deb Haaland when Haaland was named Sec. of Interior. She faces her first election this November. No Democrat has announced a primary challenge. At least two Republicans have announced they are seeking their party's nomination. 

Stansbury, a NM native, has been relishing some good press this month as the WaPo headlined a piece: 

This super-freshman is making a mark on climate policy in the House. 

Stansbury's ABQ district became more rural under the legislature's redistricting and now swings into some southern rural areas but pundits still rate it as safe Democratic. 

This is the home of New Mexico politics. 

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(c)NM POLITICS WITH JOE MONAHAN 2022


 
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