Corporations Continue Not Paying Their Fair Share
Bill tabled in House Ways and Means Committee that would have allowed corporations to pay fair share amidst state’s largest budget shortfall
Santa Fe – Tonight in the House Ways and Means Committee, legislators stalled SB 5, which would have frozen the scheduled reduction in the Corporate Income Tax for one year – a small but crucial piece in the state’s revenue structure. This bill would have helped bridge the budget shortfall without imposing any new taxes. The vote sent a clear signal that profitable companies and the well-connected continue to be a priority over hardworking New Mexicans who rely on state services which are under threat due to the budget crisis.
“We all want to have a prosperous state with thriving communities, and when we invest in the foundations of our communities, we all thrive,” said Representative Bill McCamley (D-Doña Ana). “Profitable corporations require roads, police protection, and other public infrastructure and services. It isn’t asking too much to freeze their tax cuts and partner with schools, universities, domestic violence shelters, and healthcare providers in being a part of the solution to this crisis.It is distressing that this committee voted down this bill, ensuring that profitable corporations will continue to pay much less.”
“This vote represented a commitment by the state to ask profitable corporations to pay their fair share and to give back to a state that has provided them so much,” stated Representative Javier Martinez (D-Bernalillo). “The money saved by delaying the Corporate Income Tax cut ultimately would have been spent investing back into our communities. I am saddened that not all of my fellow committee members were able to see the positive impact that the passage of this bill would’ve had in the lives of everyday New Mexicans.”
House Bill 5, that would have frozen the scheduled reduction in the Corporate Income Tax was tabled in a 8-5 vote and will not be heard in any other committees. In 2009, the U.S. Census Bureau found that corporate income taxes accounted for some $40 billion in state revenues.