A new study showing New Mexicans shouldering the fourth highest tax burden in the nation will be fodder for GOP Guv candidates Duke Rodriguez and Doug Turner. Both have been calling for either eliminating or chipping away at the state's gross receipts tax and personal income tax.

If the WalletHub study has it right (and some tax nerds may dispute it) the state's total tax burden (just the state burden not the Feds) is10.76 percent, placing us behind only Hawaii, New York and Vermont for the highest tax rate in the nation. 

New Mexico's gross receipts tax is largely responsible, says the study. 

The overall NMGRT rate is 6.28 percent with only Hawaii's 7.48 percent sales and excise taxes higher

The GRT in the state varies widely with Taos Ski Valley the highest at 9.4375 percent. ABQ is at 6.625. The city of Santa Fe is at 8.312% and downtown Las Cruces at 8.39% 

The state rate is currently 4.875 percent but local governments can add their own increments and that takes the rate much higher. 

Unlike the sales tax in other states, the NMGRT is know as the "tax on everything." It applies to almost all services leading to a much broader tax base. 

State government says it is expected to raise $4 to $5 billion from the GRT in the budget year that ends in June. Cutting into that significantly is not impossible but problematic. The latest state General Fund budget is $11.1 billion. 

As we recently noted, MLG engineered two small GRT cuts during her two terms. Rather than elimination of the GRT, such continued small cuts and a more sweeping reduction in the personal income tax rate may be an alternative that emerges to lower the state's too-high tax burden.

Keeping the PIT on high earners earners but eliminating it for a broad class of other taxpayers is one way to lower the state's overall burden. And it should be lower, say tax cut advocates, given the huge oil money reserves and the state's low per capita income.

Republicans are on board and Dem Guv candidate Sam Bregman appear flexible but Dem Guv front-runner Haaland, a progressive, may need convincing.  

A CLEAR PATH 

Vasquez & Cunningham

The path has been cleared for Greg Cunningham to become the Republican nominee for the 2nd congressional district with the announced withdrawal of his rival Jose Orozco. 

Cunningham, a Gulf War Marine veteran and former APD officer, says he is building his campaign on a platform of "border security, economic growth, and accountable governance." 

Cunningham was always the favorite for the nomination. Orozco had to resort to getting additional petition signatures to make the ballot after failing to get enough support at the GOP preprimary convention. But having Orozco, a Marine veteran and former DEA contractor, out of the contest will remove any competition Cunningham had for funding and gives him longer to establish himself without interruption as he preps to take on two-term Dem US Rep. Gabe Vasquez in November. 

The 2nd CD contest is now ranked "lean Democratic" so Cunningham will need more breaks like Orozco's towel throw to get the race in play. 

NO WRITE IN FOR DOW

We erred in the first draft of our Thursday column when we said there is a possibility that GOP state Rep. Rebecca Dow might run as a write-in candidate in the November election after being kicked off the June primary ballot by a district court for submitting incomplete screenshots of her petition signatures.

As the SOS's office explains:   

Representative Dow cannot be a write-in candidate in the November election. Pursuant to state statute, "No person shall be a write-in candidate in the general election who was a candidate or who filed a declaration of candidacy in the primary election immediately prior to the general election" (Subsection F of 1-8-66 NMSA 1978). 

Dow filed her official "Declaration of Candidacy" in March to run in the primary so she is legally considered a "candidate" for that office. 

We regret the error. To atone for it we have submitted to four lashes with a wet noodle (the maximum punishment being 10 lashes).

This is the Home of New Mexico Politics.