“…In this world nothing can be said to be certain, except death and taxes.”
— Benjamin Franklin, in a letter to Jean-Baptiste Le Roy, 1789
We’ve all heard the quote before, but how have tax burdens directed economic growth in the United States over the last century? Our upcoming speaker Brian Domitrovic has co-authored the book Taxes Have Consequences: An Income Tax History of the United States, with Arthur B. Laffer, to answer this and other questions.
Domitrovic will join the Rio Grande Foundation to discuss American history, especially the past 100 years since creation of the federal income tax at a luncheon hosted by the Rio Grande Foundation.
August 8, 2023
Taxes Have Consequences
11:45AM – 1:00PM
Indian Pueblo Cultural Center
2401 12th St NW, Albuquerque, NM 87104
About Brian Domitrovic: Brian Domitrovic is an intellectual historian interested in the history and development of supply-side economics. He is the author of six books, beginning with the now standard history of supply-side economics Econoclasts (2009) and extending to the history of the income tax Taxes Have Consequences (2022 and co-authored with Arthur B. Laffer and Jeanne Sinquefield). He has been a professor at institutions in Texas and Colorado and is the Richard S. Strong Scholar at the Laffer Center in Nashville. He holds a Ph.D. in history from Harvard University.
Tickets:
Tickets are limited. Price before July 28, 2023: $50
Price on and after July 29, 2023: $55
Price at the door if available: $60
Cancellation policy: The Rio Grande Foundation will honor cancellation requests until July 31, 2023 at 12:00PM MT, 2023, minus a 15% transaction fee.
In summary, this is yet another “big ticket” taxpayer-financed project foisted upon us when what the City desperately needs is improved public safety and an improved economic climate (not to mention a better education system). A neon tumbleweed structure may be nice, but it is certainly not a core government function regardless of your broader thoughts on bike trails and Albuquerque’s extensive trail network.
The Rio Grande Foundation, alongside the Washington-based Competitive Enterprise Institute have led a coalition letter (available here) of state-based and national free market organizations and leaders in expressing serious concerns about provisions contained in the “Railway Safety Act,” (S. 576) which is now moving through Congress.
Among the numerous issues with the bill is its arbitrary 2 person crew mandate;
A massive new regulatory burden (imposed absent any cost-benefit analysis) on movement of hazardous materials;
Enshrinement of mandates for trackside detectors and other technologies that locks a single technology into law. When government does this the public suffers as industry lacks the flexibility or incentive to pursue next-generation technologies.
The following article appeared in the Las Cruces Sun News and other media outlets on June 30, 2023.
Once again New Mexico is at the very bottom of a list. Kids Count 2023 is compiled by the Annie E. Casey Foundation with distribution and media handled by New Mexico Voices for Children.
While it is not the report Rio Grande Foundation would compile, the 16 variables considered in do highlight issues regarding the well-being of New Mexico children. Sadly, like so many similar reports, the results are not good for our state. What is unique is the positive spin being applied by Voices for Children.
As Voices for Children’s Amber Wallin recently wrote in an opinion piece, “you shouldn’t let the rankings get you down because they don’t tell us how far we’ve come.” We politely disagree and believe that Voices would not have the same sanguine viewpoint if a Republican governor or Legislature were calling the shots.
In 2019 the organization’s then Director James Jimenez said of New Mexico’s 50th ranking, “It is very much a reflection of what happened, and more specifically, what didn’t happen during the Martinez years.”
We took a careful look through this year’s report and found that of the 16 variables, 9 of them got worse while 6 improved (one stayed the same). That is hardly cause for celebration.
Perhaps even more interesting than the overall results is New Mexico’s poor performance in four “COVID-related” indicators. In our view these include:
79 percent of New Mexico fourth graders are not proficient in reading. This number has dropped 4 percent since 2019;
87 percent of eight graders are not proficient in math. This number has dropped by 10% since 2019;
New Mexico’s child and teen death rate per 100K worsened by 16 percent since 2020;
The percent of youth who are overweight or obese has worsened by 6 percent since 2019-2020.
These four variables (of the 16 in the report) have significant connections to Gov. Lujan Grisham’s COVID lockdown policies that locked our kids out of school for over a year and encouraged New Mexicans to stay inside and isolate themselves from other people.
The good news is that the COVID pandemic is over, as are the Gov.’s restrictions. Sadly, as critics pointed out at the time, the impacts of her policies were clearly going to do more harm than good. Will the kids, especially those from poor families be able to recover? It is hard to say.
What is clear is that after more than four years in office and with the benefit of an unprecedented oil boom, massive spending increases haven’t improved New Mexico’s 50th-place performance. We recommend going a different direction from the government-driven status quo (a status quo that has dominated New Mexico for nearly a century).
Instead of more government programs we can use the oil and gas surplus to reform our anti-business gross receipts tax and then focus on eliminating the anti-work personal income and corporate taxes. Make New Mexico the jobs and economic growth hub of the Americans Southwest and watch as good paying jobs and economic opportunity improve education, social, and economic outcomes for our children and all New Mexicans.
We are a long way psychologically and politically from breaking out of the big-government paradigm, but it is long overdue. After all, it’s for the children.
Paul Gessing is president of New Mexico’s Rio Grande Foundation. The Rio Grande Foundation is an independent, nonpartisan, tax-exempt research and educational organization dedicated to promoting prosperity for New Mexico based on principles of limited government, economic freedom and individual responsibility
The following appeared in the Las Cruces Sun News and numerous other newspapers on June 18, 2022.
According to New Mexico’s Tax and Revenue Department rebate checks (or transfers to bank accounts) will be going out at any time during the middle of June. At the Rio Grande Foundation we welcome the $500 or $1,000 (depending on single/married filing status). This is especially true at a time when inflation is rising faster than wages.
But New Mexico is in the midst of an unprecedented boom in its oil and gas industry and, while those checks are nice, they are a pittance relative to the windfall being experienced in State government. Worse, unless the Legislature and Gov. take concrete action and soon to diversify the economy, New Mexico will waste this unique opportunity.
First the numbers: according to the Legislature’s analysts, the one-time “cost” of the rebates is $667 million. You may recall that the Legislature began the 2023 session with a surplus of $3.6 billion and spent $1.2 billion of that.
Though new spending was “just” double the amount of the rebates, the reality is that almost all of the money not spent this year will be put into reserves to be spent in the future. That means that more than 80 percent of this year’s budget surplus will ultimately be spent (unless the Legislature enacts some real tax cuts in the 2024 session).
It is widely acknowledged that New Mexico needs to diversify its economy, but neither more spending nor one-time rebates will do that. When will Lujan Grisham and Democrats in the Legislature get serious about making New Mexico less dependent on oil and gas?
While RGF applauds genuine efforts to diversify the economy, oil and gas revenues show no sign of slowing down. That’s because New Mexico is in a production-driven boom, not a price-driven boom. So, rather than allowing a scarcity mentality to drive tax cut and tax reform decisions, policymakers should understand that strong revenues are here for the foreseeable future and should be used to get New Mexico out of its unnecessarily impoverished state.
Like all New Mexicans we at the Rio Grande Foundation welcome these rebates. What we are looking for out of Lujan Grisham and the Legislature is some kind of coherent economic strategy (besides simply spending more money). It is time to translate our oil and gas wealth into prosperity for ALL New Mexicans. That requires average New Mexicans to engage with and hold this Legislature and Gov. accountable for their policy decisions.
Paul Gessing is president of New Mexico’s Rio Grande Foundation. The Rio Grande Foundation is an independent, nonpartisan, tax-exempt research and educational organization dedicated to promoting prosperity for New Mexico based on principles of limited government, economic freedom and individual responsibility
Judge Glock, Director of Research at the Manhattan Institute, is an expert on homeless policy in the United States. On June 14 he gave a presentation in Albuquerque and also sat down with Bob Clark of KKOB radio.
The following article by William Patrick Leonard, senior fellow with the Rio Grande Foundation, was published in the Santa Fe New Mexican on 6/4/23.
According to the state Attorney General’s Office, “The Inspection of Public Records Act is intended to provide the public with access to information on governmental affairs. The law requires public access to virtually all public records with a few exceptions. Most records are available for public inspection.”
Early responses were encouraging. One research institution responded within three days. Three comprehensives and one research institution sent the requested data within two weeks. All were com- plete, although varying in format. New Mexico Highlands and UNM were non-compliant. The latter quickly denied my request, claiming an exemption from an Attorney General’s Office finding in an unrelated municipal case.
The following briefly describes how New Mexico’s public research and comprehensive universities responded to a request for data.
I appealed, noting that its rationale was flawed. Highlands was more evasive. Initially, I was redirected to other officers within the institution. Finally, I was advised that the officer responsible was off campus and unavailable to respond. My subsequent attempts failed.
I requested the number of first- time, full-time fall 2017 through 2021 New Mexico enrollees required to take between one and four remedial courses; the number completing that fall term; and the number enrolling in the subsequent spring term.
The two institutions employed different noncompliance tactics. Both appeared to have the same goal: wear the requester out. Follow- ing the Public Records Act, I sought the state’s Attorney General Office’s assistance. Some communication between the agency and Highlands led to a response that it did not have any enrolled students required to register in remedial coursework.
I first filed a public information request form with the listed custodians at the state’s public universities — Eastern New Mexico University, New Mexico Highlands University, New Mexico State University, New Mexico Tech, Northern New Mex- ico College, the University of New Mexico and Western New Mexico University suggested otherwise.
Highlands does enroll probationary and non-degree students. Further, its catalog lists a course, “English Reading and Writing for Inquiry. This course offers instruction and practice in college-level critical reading and writing skills. It is designed to give students experienceand practice developing academic inquiry needed for much of their course- work.
While the data sought likely exists, it appears to be secret. Why the institution did not reveal its current policy remains unanswered. The Attorney General’s Office appears to haveclosed the case.
The AG’s approach to UNM, cit- ing the cover of an unrelated municipal case, has remained unresolved.I was informed that it had queried the institution and referred its response to the attorneys.Three subsequent requests for the resolution to the AG’s Office have yet to receive a response.
Five of seven relatively prompt responses suggest my request did not pose major assembly or confidentiality issues.My experience indicates the Inspection of Public Records Act’s measured enforcement facilitates selective noncompliance.
Why fight the law? The prompt response from five of seven does not suggest resource issues. Perhaps the data sought challenges a desired public image. Since the data sought focuses on the graduates of New Mexico’s primary and secondary schools,any embarrassment should be rested.
Revoking the law has been advanced. It would only lead to lengthy and costly lawsuits.A more reasonable solution would include timely and consistent compliance and enforcement.
William Patrick Leonard is a senior fellow with the Rio Grande Foundation.
The following appeared in the Roswell Daily-Record on May 21, 2023.
The 2023 New Mexico legislative session was generally disappointing for New Mexicans who wish to see much-needed K-12 education reform. However, it was not a total loss. In fact, one bill did pass that could help thousands of New Mexico families pay for educational options that work best for them. Without a single “no” vote during the 2023 session, HB 342 will soon be the “law of the land.”
The bipartisan bill was sponsored in the House by Republican Minority Leader Ryan Lane and by Democrat Majority Leader Peter Wirth in the Senate. It was signed into law by Gov. Lujan Grisham, also a Democrat. HB 342 aligns New Mexico law with federal law as updated during the Trump Administration and recent legislation under the Secure 2.0 Act.
Over the years Congress has expanded the use of 529 plans to pay for kindergarten through 12th grade tuition and included student loan repayment and apprenticeship program expenses. And in 2023, Congress added a provision to allow rollovers of unused 529 plan funds into a Roth IRA for the beneficiary.
Starting on June 16 when this new law takes effect, New Mexico families will be able to deduct any contributions to their New Mexico sponsored 529 account that will be used to pay for up to $10,000 annually (per-child) on tuition expenses at an elementary or secondary public or private school (making them “qualified” expenses under New Mexico law).
Originally created to help families save for college, 529 plans have been helping families do that for years and will continue to do so into the future. For New Mexico residents, features include the fact that 100 percent of contributions to New Mexico’s plans are deductible from state taxable income in the year contributions were made to the account. If the account owner is a resident of New Mexico, then earnings and withdrawals from their 529 account are also exempt from state taxation.
New Mexico’s educational woes have been well-documented in numerous analyses. Families who are considering 529 plans or if they already have such a plan and want to know more about the latest changes can find out more at The Education Plan website https://theeducationplan.com. The Education Plan is New Mexico’s state-sponsored 529 education savings plan.
The website is informative and Rio Grande Foundation has undertaken its own efforts underway to educate New Mexicans, but it is up to families to either find this information for themselves or talk to a financial advisor.
If you have a child for whom the existing K-12 system is not working and you are considering the financial challenges of paying for school (in addition to the taxes you already pay to fund the schools), you should strongly consider looking at using a 529 plan.
This is especially true since the original purpose of 529 plans may not be as critical as in the past. That’s because many college costs in New Mexico are now covered thanks to the State’s “Opportunity Scholarship” program for “free” college. While nothing is truly free, the prospect of college being heavily subsidized by New Mexico taxpayers may change the financial equation for some New Mexico families who no longer need to prioritize saving for college and instead can use their 529 plan for K-12 tuition at a non-public school.
The Rio Grande Foundation has long been a proponent of increasing the educational options available to New Mexicans. While much work is to be done to improve educational options for families, we are pleased that New Mexico’s Legislature is allowing families to maximize the benefits of 529 plans for K-12 students. It is critical for parents of school-aged children to educate themselves on the benefits of these plans.
Paul Gessing is president of New Mexico’s Rio Grande Foundation. The Rio Grande Foundation is an independent, nonpartisan, tax-exempt research and educational organization dedicated to promoting prosperity for New Mexico based on principles of limited government, economic freedom and individual responsibility
Join the Rio Grande Foundation for a luncheon featuring speaker Judge Glock, Senior Fellow at the Cicero Institute, a nonpartisan public policy organization with deep experience in government, legislation and the law, technology, and entrepreneurship.
June 14, 2023
11:45AM – 1:00PM
Seasons Rotisserie & Grill
2031 Mountain Rd NW, Albuquerque, NM 87104
$50/plate before June 1
$55/plate on/after June 1
A pre-set menu with a vegetarian option will be available.
Judge Glock is a Senior Fellow at the Cicero Institute. He was formerly a visiting professor at the Department of Economics at West Virginia University. He received his Ph.D. in History with a focus on economic history from Rutgers University. Judge’s academic writing has been featured in the Business History Review, Review of Banking and Financial Law, Journal of American History, and Tax Notes, and his public writing has been featured in City Journal, Politico, the New York Times, and the Wall Street Journal. Judge focuses his research on the areas of budgetary reform, housing, and homelessness.
Cancellation policy:
The Rio Grande Foundation will honor cancellation requests until June 7 at 12:00PM MT, 2023, minus a 15% transaction fee.
