Stimulate the economy – return revenue to taxpayers | Bot To News

New Mexicans can’t seem to catch a break.

We have moved from the financial problems caused by the current coronavirus pandemic to an almost inevitable recession. Now more than ever, it’s important to educate taxpayers about the options available to them to increase their annual take home pay.

Taxes are complicated. Policy makers should consider simplifying the tax structure and reducing pyramid taxation to support the success of small businesses. In addition, policymakers should consider the issue of tax continuity so that taxpayers can adopt a strategic approach and better plan their family and small business budgets.

Policymakers must work together to develop a tax structure that adequately addresses and provides basic government services and promotes national economic development. When business owners know they will be treated fairly and in accordance with the state’s tax structure, they will invest in the state, which creates jobs and growth for their businesses and, in turn, boosts the state’s economy.

Using a consistent minimum combined tax structure would provide incentives for workers, retirees, and investors to train, prepare, and develop their careers, retirement plans, and personal incomes, and to save and use discretionary income to improve the quality of life at all economic levels. Policymakers should consider broadening the tax base to ease the tax burden, especially at the working class level, and to inspire our fellow New Mexicans to be able to earn a high living wage and be motivated to continue working.

This would create less stress and demand on income tax and focus on taxes on consumption, such as general sales taxes or excise duties on selected goods. The effect of a country’s tax structure on economic development involves and depends not only on the correct mix of taxes, but also on the specific characteristics of those taxes. The country’s long-term vitality depends on balancing the tax burden between personal and business taxes, a combination of different tax benefits and tax holidays that allow taxpayers to choose how much tax they want to pay by deciding what they want to buy, rather than a high rate of mandatory income tax.

Given the hardships facing our fellow New Mexicans, the proposed expanded tax base would allow for more take home income. When we have more take-home income, stress levels decrease and discretionary income increases to allow taxpayers to spend their hard-earned income on more than just the bare necessities: food (currently tax-free), proactive health and hygiene care, clothing, vehicles and party. A more balanced tax structure would allow New Mexicans to have some breathing room to afford goods and services beyond their basic living expenses. Those of you looking to complete a home renovation or take a much-needed vacation can finally do so. You could have more take home income to cover unexpected medical bills and rising utility costs or loan interest. You could have money available for emergency appliance replacements.

Federal legislation like the Inflation Reduction Act of 2022 and tax rebates will help New Mexico transition to and invest in a healthier environment. An improved, broad-based and lower income tax structure would be the foundation for supporting a strong economy and would ensure we all have the opportunity to pay our fair share. Then government services could be delivered more efficiently and everyone would have the financial capacity to move towards a more modern and sustainable economy.

The ultimate goal should be a strategic plan to reduce the impact on taxpayers whose income places them in the marginal tax brackets. Taxpayers must have an income to take home that benefits our economy and the economic future of our state, and especially our fellow New Mexicans.

We are resilient and we are all in this together.

Pete Campos, D-Las Vegas, represents District 8 in the New Mexico Senate.

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