THREE POINT PLAN: Permanent Fix for Budget Cuts
- Increase state income taxes on out-of-state corporations.
- Use Permanent School Fund and Severance Tax Fund.
- Roll back tax breaks for wealthiest New Mexicans.
QUESTIONS & ANSWERS
Do voters support education cuts?
There is very little support [13%] for cutting education to balance the budget.
Will voters vote for lawmakers who cut education?
A plurality [43%] say they would be less likely to vote for lawmakers if they voted to cut education instead of raising revenues to balance the budget.
Do voters support raising revenues for education?
61% support increasing state income taxes on out-of-state corporations.
55% support using money from the School Fund and Severance Tax Fund.
49% support rolling back tax breaks for wealthiest New Mexicans.
New Mexico's lawmakers must raise revenues for schools, colleges and universities. Here’s where they can find the money:
Walmart, Target, Lowes, Home Depot and Starbucks don’t pay state income taxes on profits earned in New Mexico. As a result, schools, colleges and universities lose $100 million each year. State lawmakers must balance the budget by requiring out-of-state corporations to pay state income taxes on profits earned in New Mexico.
New Mexico has a Permanent School Fund. It’s in the State Constitution, Article 12, Section 2. Look it up. The School Fund is valued at $9 billion. State lawmakers send the School Fund to New York, to be invested in Wall Street. Instead of cutting education, lawmakers must use the Permanent School Fund to balance the budget.
New Mexico has a Severance Tax Fund. The value of this fund is $3 billion. Lawmakers invest this fund in Hollywood movies and corporations. Instead of cutting education, New Mexico's lawmakers must use the Severance Tax Fund to balance the budget.
State lawmakers gave New Mexicans, who earn $250K or more, a break from taxes in 2003. As a result, schools, colleges and universities lose $350 million each year. Instead of cutting education, lawmakers must balance the budget by ending these tax breaks. This is not a tax increase. It's going back to rates [8%] they paid until 2004. The rich can tightened their belts, too.