State Representative-Elect Elaine Sena Cortez has proposed eliminating the state income tax in New Mexico, suggesting it could return "hundreds of dollars back in your pocket." This statement was made in a January 3 opinion piece.
"Imagine what your family could do with the state income tax money currently withheld from each paycheck," said Elaine Alice Sena Cortez, State Representative Elect. "For many of you, that would result in hundreds of dollars back in your pocket."
Cortez recounted a personal experience after a grocery shopping trip for her family of three, where she was surprised to find that nearly filling a cart cost $600. She considered the challenges faced by New Mexico residents, particularly those in single-income households, single mothers, and large families, who may struggle with basic expenses. This reflection led her to contemplate the impact of removing the state's income tax and how residents might benefit from retaining money typically withheld from their paychecks.
According to Cortez, when the new legislature convenes, she intends to introduce a bill aimed at eliminating the state’s income tax to alleviate financial pressure on New Mexico residents. In conversations with fellow legislators, concerns have been raised about potential losses in state programs and whether such a proposal might be too extreme. Additionally, there are apprehensions that removing personal income taxes could eliminate tax rebates and credits for New Mexico residents. However, Cortez argues in her op-ed that keeping this money could significantly aid New Mexicans by increasing their budgets.
New Mexico Voices for Children’s 2023 guide on the state's tax system indicates that income taxes represent the second-largest funding source for the state's general revenue fund. These taxes are levied on individuals' incomes or business owners' profits. For fiscal year 2024, New Mexico's general fund revenue was projected at $11.82 billion, with personal income tax contributing $2.22 billion or 19% of the total.
Elaine Sena Cortez is described as a lifelong resident of New Mexico and owns Sena Cortez Consulting LLC. She also serves as 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.
