As the first-ever “virtual” New Mexico legislative session kicks off we believe it is important for New Mexico policymakers to have some basic information about New Mexico’s economy.
- New Mexico tax burdens are not low relative to neighboring states. The chart below is from the Federation of Tax Administrators. With far heavier tax burdens than its neighbors, New Mexico’s tax burden ranks 7th-heaviest among states.
- According to the website US Government Spending state and local spending in New Mexico is far higher than in neighboring states as a percentage of the state economy (GDP). The data are constantly being updated, but New Mexico consistently has the biggest-spending state and local governments in the US.
- When it comes to raising the minimum wage, mandatory paid sick leave, or a variety of other economic policies, New Mexico lags dramatically. The data in the Fraser Institute analysis below is from 2018 which is the final year of Susana Martinez’ time in office. New Mexico desperately needs MORE economic freedom, not less.
4.. We already know New Mexico is among the poorest states in the US. If the Legislature is serious about reducing poverty and improving outcomes for children and the rest of the population (regardless of race or gender) it needs to have a serious conversation about economic freedom issues. like taxes and regulations.