A proposal to give New Mexico retirees a Social Security state tax exemption was tabled today by the House Taxation and Revenue Committee. The Republican-sponsored bill would have provided New Mexico seniors with a real tax break, about $700 annually.
Rep. Cathrynn Brown (R)-Carlsbad and Rep. Gail Armstrong (R)-Magdalena co-sponsored House Bill 29. This legislation, along with another measure to ease tax pains for seniors, both stalled in the committee as members expressed concern over funding.
Democrat Chairman of Taxation and Revenue Jim Trujillo (Santa Fe) suggested three times that the state could pay for the exemption by doubling the property tax.
“We have just begun the fight to relieve our retirees from burdensome taxation,” said Rep. Cathrynn Brown. “Our policies are counterintuitive to keeping and attracting retirees to our state. I am going to do all that I can to stand up for retirees.”
Attracting retirees is one of the easiest and most environmentally friendly ways to grow our economy, so Democrats once again shoulder the blame for not understanding basic economic truths about how to grow our economy.
It’s unlikely the effort to deliver a Social Security income tax break will move forward following the committee’s action.
“The majority of New Mexicans support exempting social security from taxation,” said Rep. Gail Armstrong, “Why would we not try to take care of our retirees? The New Mexico Legislature has surplus money and a desire to uplift New Mexicans, so let’s not leave our senior citizens behind.”
At present 13 states impose a tax on Social Security income.