A New Mexico legislation that would eliminate tax on Social Security for middle and upper-class residents by 2026 was stonewalled in a recent vote.
The bill was declined after a 4-4 vote with Democrats in opposition, according to KRQE.
“I know there’s a cost to it and I realize that, but I think that in a time of pandemic and issues that we’re facing with inflation, now is the time — and the year when we have a plethora of money,” Rep. Gail Armstrong (R-Magdalena) told KRQE.
It’s estimated that passing the bill would result in a $160 million loss in revenue, however, Republicans claimed the loss would be offset by more people moving into the state and the fact that the state already has a large surplus, according to the station. The governor and other legislators are proposing legislation that would increase annual spending by $1 billion which would be an issue if they didn’t have the income from the Social Security Tax.
“This for me is a question around equity and who needs the resources the most,” state Rep. Kay Bounkeua (D-Albuquerque) said, according to KRQE. “I would love to see the money put into those who are younger, and really have more resources for our families who are currently working.”
