As New Mexico Legislators draft a state budget amidst the current economic climate, they are looking for areas to cut and enact taxes. Legislators should take a second look at the current tax structure. In my opinion, the current system is unfair to both citizens and the state’s ability to raise much needed revenue.
For instance, New Mexico lawmakers need to refigure ways to provide additional revenue for the New Mexico Department of Transportation (NMDOT). According to one elected official nearly $400 million in additional revenue could be generated by closing the gas tax loophole. This includes a 4-to-1 match from the Federal Government totaling over $300 million. This tax loophole allows for Native American lands to be exempted from taxes on gasoline.
Many New Mexicans are unaware of the potential tax revenue that could be generated through taxation of gasoline purchased on Native American reservation lands. These products have been tax-exempt since 1992, as the intention was to provide economic development through tax exemption. However, that incentive is no longer needed thanks in part to the casino revenues that are boosting the economies of many Native American Pueblos and Tribes.
The issue, as I view it, is that ‘non-natives’ are benefitting from the tax exemption, or ‘loophole’, whichever you prefer. I feel as though all New Mexicans and tourists that are utilizing our roadways and thoroughfares, should be supporting the construction and maintenance of those roadways. It is, I believe, imperative that our elected representatives, as well as the general public recognize the seriousness of the situation and the enormous loss of revenue, which New Mexico is feeling, as a result. It is not now, nor has it ever been an issue of sovereignty. I have no issue with tribal sovereignty. I have no issue with Native Americans being able to purchase and consume, for their own benefit, gasoline free of excise taxes – only non-Natives.
While I support Native American rights as sovereign nations, I am certain that a large majority of consumers at stations are not of Native American ancestry. Those same consumers drive on New Mexico roads day after day. These roads need constant maintenance and improvement. Without tax dollars to contribute to the transportation fund, our roads will sink into further disrepair. The NMDOT does not receive money from the general fund and relies on the excise taxes to complete and maintain road construction projects.
Road construction projects create thousands of jobs every year in the state of New Mexico. A lack of revenue will bring another threat, job loss. Most people don’t need to be reminded of the current economic situation and the high rate of unemployment. But this is a growing concern that could affect our financially strap the state very soon.
While it is neither the desire, nor the intent, to interfere with tribal activities – an equitable solution is required to boost much needed revenue for our highways, to ensure safety for all drivers and bring additional jobs to the state.
Ruben Baca of the New Mexico Petroleum Marketers Association
2.14.2010
1.27.2010
GOP State of the Union Response
Governor Bob McDonnell (R-VA) delivers the Republican response to Obama. It was not a great speech but a couple good points were made.
Tax payer money should not be used to defend terrorists in civilian courts, it should be used to prosecute and convict them! "A childs educational opportunity should be determined by her intellect and work ethic, not by her zip code", one of the best lines in the speech.
The Republican response followed the purely partisan line, unfortunately that partisan line still fosters neo-conservative sentiment. I am encouraged to hear more liberty oriented rhetoric but only time will tell if the GOP will actually return the principles our founders followed. Americans don't have time for more empty partisan promises... pragmatic solutions rooted in our conservative principles will ensure our return to stability and prosperity.
1.25.2010
Gary Johnson in New Hampshire
Thanks via Jim Scarantino at the New Mexico Watchdog for posting this! Visit www.newmexico.watchdog.org
1.24.2010
More Energy, More Jobs, More Revenue
By Bob Cornelius
As our State Legislature convenes in Santa Fe, many legislators have offered several proposals to raise revenue for our budget deficit by raising taxes on the poor by increasing taxes on food. We’ve also seen proposals to tax the “rich” by raising income taxes. There’s even talk of raising our gross receipts tax on business. I am amazed that our elected officials would even consider raising taxes during a time of recession in our state.
What the Richardson-Denish administration and the Democrat led State Legislature fail to see is that higher taxes won’t create more revenue, it will create less. If they raise the tax on food, people will shop less and go hungry more often. If they raise income taxes, people will move out of the state and look for a new job. If they raise the gross receipts tax, businesses will have to find ways to make up the financial hit and that usually means they will layoff some employees or take their company and their jobs to a state that is more business-friendly. According to a report from the NM Department of Workforce Solutions, New Mexico lost over 43,000 jobs in 2009. We can’t afford to lose more jobs by raising taxes.
The easiest way to raise revenue is to create jobs. More jobs mean more people paying income taxes, buying more food, and more businesses doing more work which increases the state’s revenue from the gross receipts tax. The most likely place for new jobs to be created is in the area of energy, both traditional forms like oil and natural gas and by creating a new energy economy to include wind, solar, clean coal, biogas, hydro and eventually nuclear.
Unfortunately for New Mexico, the same Legislature that wants to raise your taxes, has also created over-burdensome regulations on energy that have attributed to the 43,000 jobs lost and will continue to cause more people to lose their job if steps are not taken to ratify the situation.
Instead of raising your taxes, the State Legislature needs to take a look at revising the “pit rule” policy created by the Oil Conservation Division. This policy is not law, but it has effectively killed thousands of jobs in the oil, natural gas, and mining industries. This rule adds an additional $150,000-$250,000 to the price of every well a company drills, depending on which part of the state the company drills. If we eased the regulation, a company could spend that $250,000 to create eight jobs that pay over $15 an hour. That was just for drilling one well. Ideally, these companies could hire more people and do more energy exploration. The company would pay more gross receipts taxes, the new employees would pay income taxes and could afford to buy more food for their families. The tax revenue created would help the budget crisis and with oil and natural gas prices recovering, a percentage of the revenue from the minerals would go into the Land Grant Permanent Fund which funds Pre-K through 12th grade education and our colleges in New Mexico.
Along with the revised regulations, I am proposing that the State Land Commissioner work with climatologists and geologists to locate ideal areas for the creation of “green job zones”. These studies would allow us to target areas of state land where renewables like solar and wind could produce the most energy. With the proposed Tres Amigas power plant outside of Clovis connecting major electrical grids and the Legislature’s mandate that local utility companies use 20% renewable energy to create electricity, there is an already made market demand for renewable energy businesses to come in, create thousands of jobs and produce billions of dollars of new revenue for this state.
This could all be accomplished in this 30 day session of the State Legislature. Instead of arguing over which taxes to raise and on whom taxes will be raised, the Legislature could be working to foster a climate for job growth and real revenue enhancements. We can solve this budget crisis by being proactive and taking a new way forward, instead of trying the old failed policies of the past.
The plan is simple: More Energy, More Jobs, More Revenue.
Bob Cornelius
Republican Candidate for State Land Commissioner
PO Box 326 Tatum, NM 88267
What the Richardson-Denish administration and the Democrat led State Legislature fail to see is that higher taxes won’t create more revenue, it will create less. If they raise the tax on food, people will shop less and go hungry more often. If they raise income taxes, people will move out of the state and look for a new job. If they raise the gross receipts tax, businesses will have to find ways to make up the financial hit and that usually means they will layoff some employees or take their company and their jobs to a state that is more business-friendly. According to a report from the NM Department of Workforce Solutions, New Mexico lost over 43,000 jobs in 2009. We can’t afford to lose more jobs by raising taxes.
The easiest way to raise revenue is to create jobs. More jobs mean more people paying income taxes, buying more food, and more businesses doing more work which increases the state’s revenue from the gross receipts tax. The most likely place for new jobs to be created is in the area of energy, both traditional forms like oil and natural gas and by creating a new energy economy to include wind, solar, clean coal, biogas, hydro and eventually nuclear.
Unfortunately for New Mexico, the same Legislature that wants to raise your taxes, has also created over-burdensome regulations on energy that have attributed to the 43,000 jobs lost and will continue to cause more people to lose their job if steps are not taken to ratify the situation.
Instead of raising your taxes, the State Legislature needs to take a look at revising the “pit rule” policy created by the Oil Conservation Division. This policy is not law, but it has effectively killed thousands of jobs in the oil, natural gas, and mining industries. This rule adds an additional $150,000-$250,000 to the price of every well a company drills, depending on which part of the state the company drills. If we eased the regulation, a company could spend that $250,000 to create eight jobs that pay over $15 an hour. That was just for drilling one well. Ideally, these companies could hire more people and do more energy exploration. The company would pay more gross receipts taxes, the new employees would pay income taxes and could afford to buy more food for their families. The tax revenue created would help the budget crisis and with oil and natural gas prices recovering, a percentage of the revenue from the minerals would go into the Land Grant Permanent Fund which funds Pre-K through 12th grade education and our colleges in New Mexico.
Along with the revised regulations, I am proposing that the State Land Commissioner work with climatologists and geologists to locate ideal areas for the creation of “green job zones”. These studies would allow us to target areas of state land where renewables like solar and wind could produce the most energy. With the proposed Tres Amigas power plant outside of Clovis connecting major electrical grids and the Legislature’s mandate that local utility companies use 20% renewable energy to create electricity, there is an already made market demand for renewable energy businesses to come in, create thousands of jobs and produce billions of dollars of new revenue for this state.
This could all be accomplished in this 30 day session of the State Legislature. Instead of arguing over which taxes to raise and on whom taxes will be raised, the Legislature could be working to foster a climate for job growth and real revenue enhancements. We can solve this budget crisis by being proactive and taking a new way forward, instead of trying the old failed policies of the past.
The plan is simple: More Energy, More Jobs, More Revenue.
Bob Cornelius
Republican Candidate for State Land Commissioner
PO Box 326 Tatum, NM 88267
1.21.2010
Timothy P. Carney on "Obamanomics": Crony Capitalism as Progressive Reform
Obama is an extension of the neo-conservative "crony capitalism". It's not Democrat and Republican anymore.
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