State Representative-Elect Elaine Sena Cortez has expressed concern over New Mexico's poverty level, describing it as having reached "epidemic proportions" in a January 3 op-ed. She highlighted the widespread financial insecurity affecting the state.
"Financial insecurity is an epidemic plaguing New Mexicans; the good news is we have a cure," said Elaine Alice Sena Cortez, State Representative Elect. "It is safe to say New Mexico's poverty level has reached epidemic proportions."
Cortez plans to introduce legislation aimed at eliminating New Mexico’s income tax to alleviate the financial burden on residents. According to her discussions with other legislators, concerns have been raised that such a measure could lead to a loss of state programs and be perceived as too radical. Critics also fear that removing personal income taxes would eliminate tax rebates and credits for New Mexico residents. In response, Cortez said that her bill would allow qualifying families to apply for tax rebates and credits. She argues that the money typically withheld from paychecks could provide financial relief to New Mexicans, bringing hundreds of dollars back into their budgets.
According to New Mexico Voices for Children’s 2023 guide on the state’s tax system, income taxes are the second-largest category of funding for the state’s general revenue fund. These taxes are paid by individuals on their income or by companies on their profits. For fiscal year 2024, New Mexico’s general fund revenue was estimated at $11.82 billion, with personal income tax contributing $2.22 billion, or 19% of the total.
Despite this projected income from personal income taxes, data from the U.S. Census Bureau indicates that in 2020, more than 18% of New Mexico residents lived below the poverty line. This positions New Mexico as having one of the highest poverty rates in the United States. The U.S. Census Bureau's 2020 data ranks New Mexico third highest in poverty rate among U.S. states, with approximately 18.55% of its residents living below the poverty line. From 2019-2023, the median household income in the state was $62,125, and per capita income in the previous 12 months was $34,823.
Elaine Sena Cortez is a lifelong resident of New Mexico and owns Sena Cortez Consulting LLC. She is also a professor at both the University of the Southwest and Eastern New Mexico University. Her academic credentials include a Bachelor of Business Administration from the University of the Southwest, a Master of Business Administration from Eastern New Mexico University, and a Doctor of Business Administration from the University of the Southwest.
