Monday, January 31, 2022

Takedown of MLG Over Move To The Right Continues; Her Tax Cut Now In Trouble; More Progressive Legislature Isn't Taking Her Bait, Plus: Marty's New Boss

Sen. Wirth 
MLG's legislative agenda continues to slide into a black hole at the 30 day legislation session with Senate Majority Leader Peter Wirth dissing the Guv's proposed cut in the state gross receipts tax and a state representative resigning for mental health reasons--but apparently following an intense argument with the Governor over her hydrogen hub bill.

MLG's swing to the right to protect her re-election continues to go unheeded by progressive Dems who are avoiding direct criticism of Lujan Grisham but who are taking down her agenda. 

Wirth sent to the legislative ICU her measure calling for a one eighth of a cent cut in the gross receipts tax rate. He quipped:

"It’s easy to vote for these bills; it’s really hard to vote for bills that raise revenue,” Wirth also questioned whether cities and counties would increase the local tax rates they levy on top of the state rate if the tax cut is approved. Current total tax rates have crept above 9% in some parts of New Mexico.

And the Friday resignation from the state House of ABQ Dem Rep. Brittney Barreras, who cited mental health concerns, had reliable Roundhouse sources taking note. They report that prior to the resignation she had a disagreeable phone call with MLG over that hydrogen hub bill that was tabled on a 6 to 4 vote in the House energy committee that Barreras sits on. Barreras was not present for the vote. Enviros are livid over the Guv's plan, calling it a sellout to the fossil fuel sector. 

The Fourth Floor is playing it cool noting there are a couple of weeks left in the session, more than enough time for a turnaround. But is there? 

(The BernCo Commission will meet Wednesday afternoon to name a replacement for Barreras.)

OUT OF STEP

MLG's rightward tilt is out of step with recent election results. In 2020 progressive Dems busted the conservative coalition in the Senate and the House has grown increasingly progressive as the state has grown more blue. 

The Guv's actions mimic those of former Dem Gov. Big Bill, one of her mentors who polished a reputation as a tax cutting Democrat and a centrist on other issues of the day. But those days are long gone and a large swath of the MLG agenda looks nearly irrelevant and is being treated as such, especially with the deep dive over her esoteric and previously unheard of hydrogen hub plan. You can almost hear Mr. and Mrs. New Mexico saying aloud: "Her what plan?"

The gubernatorial genuflection to conservatives is a bet that progressive Dems have nowhere to go, especially not to an increasingly radicalized Republican Party. The risk is that they go nowhere--that come election time they take a pass. 

Speaking of the R's, we've been been bombarded with email to cover the developments over the filing of false electoral college certificates one of which names Trump the winner of the NM presidential election in 2020. There's not much to add to the coverage except that it again highlights that radicalization that will cast a pall over the eventual GOP Guv nominee and the battle for the southern congressional seat held by GOP Rep. Yvette Herrell. 

On that front, the filing day for the office of Governor, other statewide offices and the congressional races is tomorrow. Will there be any surprises--like late entries or withdrawals?

MARTY'S BOSS

The Wertheim's
MLG didn't exactly put the handcuffs on former ABQ Mayor Marty Chavez who she recently named as a senior adviser for the distribution of $3.7 billion in federal infrastructure funds. She did, however, send a message when she shuffled the deck and appointed Bianca Ortiz Wertheim as the director of the infrastructure office. 

Wertheim moves over from the Dept. of Homeland Security (what happened there?) She is a former chief of staff to ex-Sen. Udall and also once worked under ex-Mayor Chavez. Now the tables are turned and she's the head honcho. 

How these moves come out of the blue is one of the hallmarks of the current administration but Chavez shouldn't be surprised. He says he is "delighted" to have Wertheim "in our corner." 

Uh, it looks like her corner, your Honor. 

By the way, Wertheim's husband, attorney and former politico John Wertheim, is MLG's campaign treasurer. You're outnumbered Marty but congrats on the job. . . or something.

TAX TALK

Reader Bob Carroll writes in defense of the state House labor committee that nixed a repeal of the state income tax on Social Security recipients but at the same meeting gave a tax exemption to those receiving military retirement pay:

Joe, The tax exemption for military retirement pay was unanimously approved by the Committee because it has a cap in it of $30,000. It primarily goes to the lower ranking retirees, who almost invariably need to start second careers to stay afloat financially. That same committee voted 4-4 on the exemption for all Social Security income, with the dissenters expressing concern that the exemption does too much to help those that don’t need it. Representatives Phelps Anderson and Harry Garcia, sponsors of the Vets bill, wisely determined that the cap would convince the Committee to pass the Vets exemption. They freely admitted in open session that that was their motivation for putting in the cap. 

A Senate bill calling for the SS repeal does not have an income cap--yet. 

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(c)NM POLITICS WITH JOE MONAHAN 2022