Mitchell Freedman

The idea of eliminating the state income tax for New Mexico's lower income households is catching on in the wake of Democratic and independent voter defections to Donald Trump. In this edition of Other Voices, longtime Rio Rancho attorney, author and progressive Mitchell Freedman argues that the state needs to do more than just cut taxes:

Economically-oriented progressives like a progressive income tax. The New Mexico income tax system is, sadly, a mostly regressive income tax system, and needs to be reformed. Right now, a New Mexican wage/salary earner is paying between 4% and 5% income tax, whether the earner is making $30,000 or as much as $200,000. 

That is much more flat than progressive. Most people who call themselves economically conservative like a flat, not progressive, income tax system or oppose any income tax at all (as in right wing Texas and Florida). 

As an economic progressive, I will be pushing our representatives to ensure nobody making $40,000 or less should be paying any state income tax--plus those earning over $175,000 should be paying 7% on the margin and those making over $500,000 9% on the margin. 

I emphasize "on the margin," because, in my lifetime, our news media--and too many government class teachers-- have been awful in teaching people about marginal taxation rates, which means the rate one pays rises only after reaching different levels of income. So, a millionaire pays the same tax sum on the first $50,000 earned that a person making $50,000 annually earns, and so on. 

As I look at the slight increase in progressive tax rates in the legislative bill last year, most, but not all, progressive Democrats supported that bill. It was mostly Republicans and conservative Dems who opposed making the tax rates more progressive. So, let's not confuse readers into thinking the vast majority of Republicans, who are no longer anything but right wing, would support making our state's income tax system more progressive in its function. 

Even if they supported cutting income taxes at the lower rate, most would fight like hell against making well-off and wealthy people pay a higher rate on the margins, which, if they blocked the increase on the well-off and wealthy, would recklessly leave less revenue coming into the state overall. 

And maybe we can do the same for corporate tax, as that tax starts at 4.8% for the smallest of businesses and all the way up to $500,000 net income. That is really a flat tax. The tax only rises to 6.9% for the biggest companies. I can definitely see some room for progressive tax rate improvement in state corporate income taxation, too. 

The other thing NM should consider, since oil production output is not lessening, is to go the Alaska route, and give each New Mexican, 18 or over, $2,000 a year from the oil revenue. Universal basic income (UBI) here we come! 

And who knows, maybe a Republican who claims to be a populist may join this Bernie Sanders Democrats in supporting a truly progressive income tax and corporate tax--and UBI. I dare to dream! 

MORE TAX TALK 

Reader Maurreen Skowran, a BernCo Dem party ward chair, comes with this:

Joe, the idea of eliminating state income taxes for people earning less than $45,000 a year would be a great boon to New Mexico’s lower-income residents. But the state can do even more. I propose to accompany that tax cut with a refundable Cost-of-Living Credit to target those with the greatest need. 

This plan would support both working families and those who can’t work, such as new mothers and people with disabilities. The Cost-of-Living Credit would provide up to $1,000 for those making less than $25,000, $750 for those between $25,000 and $35,000, and $500 for those earning between $35,000 and $45,000. 

Together, these measures would cost around $250 million annually — a manageable figure given New Mexico’s surplus from oil and gas revenue.

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Following this month's election women now make up a majority of the 112 members of the state legislature, after steadily gaining numbers for the past decade. 

New Mexico in 2025 will see a female-majority Legislature with 60 of 112 seats in the Roundhouse to be held by women. That breaks down to 44 of the 70 members in the state House of Representatives — or 63% — and 16 of the 42 seats in the Senate — or 38%.

So how come there's been no reform of the department that most observers thought would be first in line for a fix as women flex their muscle at the Roundhouse? 

That department would be the perennially troubled and deeply disappointing Children, Youth and Families Department (CYFD). 

There have been a few outspoken women lawmakers openly demanding change (Republicans Rebecca Dow and Crystal Brantley come to mind), but most of the female lawmakers are Democrats and they have done little or nothing to prod fellow Democrat and Gov. Lujan Grisham to execute the major shake-up required to stop the heartbreaking results the state's kids so often get from the agency.

The advent of a majority female legislature is an event worth celebrating but if New Mexicans were (or are) expecting women to act differently than other politicians, CYFD is their answer. 

MLG FOR TRUMP?

NM GOP Chairman Steve Pearce fires off a piece of sarcasm that hits the funny bone:

Governor Lujan Grisham signed New Mexico on to the National Popular Vote Interstate Compact that swears a state’s Electoral College delegates to the winner of the national popular vote. Will she advocate for conceding NM's delegates to Trump? 

Concede our five electoral college votes to Trump? MLG would be as likely to do that as going duck hunting with Martin Heinrich. 

BOFFO TURNOUT

Santa Fe County Clerk Katharine Clark comes with this eyebrow raiser:

Santa Fe County achieved a voter turnout of over 74%, far surpassing the state average of 67%. A critical factor in this success was the county’s strategic voter turnout campaign, which encouraged early and absentee voting. 

As a result, more than 78% of voters cast their ballots early or by absentee, reducing Election Day wait times and ensuring smooth operations. 

Will we see those stats in campaign literature for a Clark Secretary of State candidacy in 2026?

WRONG NUMBER

We picked up on some erroneous (or premature) numbers from Politico regarding McKinley county. 

The presidential vote in McKinley, according to the latest unofficial results, has Harris receiving 61 percent to Trump's 36 percent. The number published earlier had the race there much closer. 

However, the article's point that Trump did exceedingly well in the heavy Native American county compared to 2020 holds up. Four years ago Biden received 68 percent there and Trump only 29 percent.   

NOB HILL CLOSURES  

A reader comments on news of the closing of a number of businesses in ABQ's Nob Hill neighborhood:

Joe, I followed a link in one of your recent articles to another story about business owners faulting the mayor for recent business closures. I love those intrepid warrior-saints, battling the forces of anti-business evil! Whenever a business succeeds, its due to the indefatigable entrepreneurial energy of the owner. When a business closes, it's the government's fault--no matter the procession of tax cuts and corporate subsidies the Chamber of Commerce crowd has won. Ha! 

We welcome your emails of musings, comments, criticisms and existential angst.

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Trump and Musk

With Donald Trump and Elon Musk breathing down their necks, state officials announced a seemingly abrupt change in policy and finally agreed to jump start high speed satellite delivery for tens of thousands of internet-deprived New Mexicans.

We and a number of our readers have been pounding the table for such a pivot because of the agonizingly slow ramp up of service to so many rural areas.

It apparently took Trump and his alliance with Musk, owner of Starlink, the company driving satellite internet ,and new FCC Chairman Brendan Carr. Carr is determined to approve roadblocked federal funding including $886 million for Starlink.

The state has now moved off the dime:

Whatever it took, New Mexico is about to take a major step forward. Years of waiting for expensive fiber to be buried in the ground to serve remote locations could be history:

The Office of Broadband Expansion and Access announced:

(OBAE) will call on the Legislative Finance Committee to provide $70 million in nonrecurring funds to expand high-speed internet. . . The request will create a near-term affordable pathway for many New Mexicans to access high-speed internet, particularly in rural and hard-to-reach parts of the state. . . There are approximately 95,000 locations in New Mexico that are in areas eligible for satellite service. . .The $70 million. . .would go toward a proposed initiative called Accelerate Connect NM, which would subsidize the cost of connecting to satellite high-speed internet service for qualifying unserved or underserved households. 

Accelerate Connect NM will bridge the accessibility gap for tens of thousands of New Mexicans while multi-year broadband infrastructure, such as fiber, is being built out across the state. “Our funding request reflects the short-term needs for connectivity and affordability, while advancing dozens of projects that will deliver on the long-term needs of the State,” said Drew Lovelace, Acting Director of OBAE. “Nobody in New Mexico should lack high-speed internet. Accelerate Connect NM will be vital to achieving inclusivity for rural homes and businesses.” 

We couldn't have said it better ourselves and legislators, we believe, will be happy to agree. We can only urge Sen. Munoz and others not to reduce the ask for this most necessary program.

We rejoice in the decision because it will be life-changing for thousands of young New Mexicans struggling to keep pace with educational opportunities, improve social relationships and give a boost to businesses that have been unable to connect. 

The choice of Starlink as the vendor would have to be approved by the state but they are the main provider and leader. There is also Jeff Bezos' Project Kuiper offering the satellite connections. 

Starlink is promoting satellite service for $120 per month with hardware to set it up going for $349.00.

$70 million in state funding would be more than a drop in the bucket. It is a substantial investment in satellite technology whose speeds are predicted to only get faster in the years ahead. 

NO EXCUSES

FCC Chair Brendan Carr

If the FCC frees up roadblocked federal funding, as now expected, more funds could be rolled out. 

The state "has been working on the grant program to award $675 million in state awards through the federal Broadband Equity Access and deployment (BEAD) program." 

There are simply no excuses left to bring our internet technology fully into the 21st century with satellite a cornerstone of that effort rather than an afterthought.

The state's decision to front-run the Trump administration will preempt an all-out attack on the foot-dragging pace of delivering broadband. The very areas where Trump outperformed in the presidential election--Hispanic and Native American dominated rural counties---will benefit greatly from the decision.

If Trump wants to take credit, that's fine. In fact, he and Musk deserve some love for the breakthrough even from the Democrats--who finally saw the satellite lights way up in the beautiful New Mexico sky.

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State Rep. Gail "Missy" Armstrong is the newly elected state House Minority Leader and she may fulfill that old adage of being "the right person at the right time."

She has the chance to deescalate harsh rhetoric over social issues and have her party concentrate on the meat and potatoes that helped Trump break into traditional Democratic constituencies here and cut his statewide loss to to Harris to 6.01 points (updated figures). 

As we blogged post-election, that's the best showing in the state by a GOP presidential nominee since 2004.

Localizing such a national trend is like scaling Wheeler Peak in January but it's either climb or die for the R's.

Armstrong, first elected in 2016, is a pillar of the Republican business establishment. She and her husband Dale Armstrong own TLC, the plumbing and air conditioning powerhouse that has made possible their standing as top donors to Republican campaigns.

She has shown a collaborative bent in her service on the Legislative Finance Committee and has championed rural healthcare for her sprawling NM District 49, centered in Socorro and the largest House district in the state. She says as leader she will be prioritizing the troubled CYFD.

She hit the right tone upon her election if she chooses to pursue a broadening of her party:

I am committed to focusing on the areas of common ground that unite rather than divide us. Only together can we make lasting change here in New Mexico. I look forward to leading the Caucus forward with common sense legislation that improves every life here. . . 

Unlike her immediate predecessors, Armstrong should be able to talk with the Democratic Governor and legislative leadership. 

The Republican opportunity as a result of the election is to rebrand the state GOP as a party with appeal to the majority-minority voters they long ago lost. Some of those voters have signaled they are looking for a different path.

Armstrong will be the first woman leader of the House Republicans. That's notable but the more important history Armstrong could help forge--if she has the character and resolve--is to move her party from quasi-permanent exile to a capture of voters who leaped to their side on Election Day.

SIDEBAR

The full results of Saturday's House GOP caucus elections include a leadership post for Rebecca Dow, who reclaimed her old House seat Nov. 5:

The House Republican Caucus unanimously elected new leadership. Representative Gail Armstrong (District 49) was elected as the new Republican Leader, Representative Alan Martinez (District 23) as the new Republican Whip, and Representative Rebecca Dow (District 38) as the new Caucus Chair. 

Here's another wrap on the Senate and House leadership elections.

HOUSE LEADERSHIP

Rep. Szcepanski (Journal, Moore)

On the other side of the aisle, House Democrats again chose Rep. Javier Martinez as their speaker, a choice that will be ratified by the full House in January.

Martinez,who launched his career as an unabashed progressive, has now leaned into liberal pragmatism as his hold on statewide leadership firms. The difference is an accommodation of views rather than strict ideological obedience. 

Rep. Reena Szcepanski of Santa Fe fought off a challenge from fellow Santa Fean Linda Serrato to become House Majority Leader, the post being vacated by the retiring Rep. Gail Chasey. This is one of the few public signs of some competition among the House progressives.

Moderate ABQ Dem Day Hochman-Vigil was chosen by the Dem caucus as Majority Whip, giving the Dems a mixture of philosophies at the top. She defeated ABQ's Charlotte Little for the position which Szczepanski had held. 

(Hochman-Vigil appeared to make a play for more progressive support as she came with an op-ed faulting Republicans on transgender rights just days before the vote.)

The Caucus came with a statement that recognized the discussion of tax cuts for lower income households:

In the 2025 Session, House Democrats will focus on improving community safety, lowering taxes for working families, ensuring all children get the education and opportunities they deserve, expanding access to healthcare, including behavioral healthcare, lowering the cost of housing, and continuing to build an economy that works for all

Speaker Martinez and other Dems don't want that tax territory ceded to the Republicans.

SENATE DEMOCRATS 

Sen. Wirth

The Senate Democratic Caucus Saturday kept the same leadership for the next two years with Sen. Peter Wirth again chosen as Majority Leader, Sen. Michael Padilla as Majority Whip and Sen. Mimi Stewart as President Pro Tem which will be voted on by the full Senate in January. Sen. Leo Jaramillo was picked as Senate Majority Caucus Chair.

The House members, up again for election in two years, and the Governor, now an official lame duck, have cause for concern with the new national environment. 

They have failed to fix CYFD, deliver better results from PED and to demand a more robust crime response from the city of ABQ while getting stuck in political quicksand.

These failures are in addition to of the impatience of certain voters with economic circumstances while abortion and other social issues gobble up the oxygen. 

Left unresolved, the aforementioned list could be the backbone of a Republican campaign to take back the Governor's office in 2026, if a competitive candidate runs..

Senate Republicans decided their new leadership last week, including choosing Farmington Sen. Bill Sharer as Minority Leader. 

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