Did you miss the BASH? Last Thursday at the Marriott hotel in Albuquerque, NMBC members gathered to hear Senators John Arthur Smith and Stuart Ingle on stage together discussing the events of our last legislative session and thoughts on moving forward.
Last Thursday’s BASH (Business and Social Hour) event was a refreshing departure from the rough and tumble political climate of today, and an example of true statesmanship and friendly bipartisan comradery. Both Senators Smith and Ingle were in true form at the BASH as they covered the events of our last legislative session and elaborated on the path forward for our state.
Governor Lujan Grisham has signed HB 85 Union Security Agreements, which eliminates Right to Work employee free-choice ordinances in 10 counties and the Village of Ruidoso. This makes mandatory union dues as a condition of employment allowable in New Mexico.
NMBC's position remains that this new law appears to violate the New Mexico state Constitution in three ways:
Last month, the federal government ran the largest monthly budget deficit on record.
As the normal course of business for the legislature, much is happening in the final days ending Saturday, 3/16/19, at noon.
You’ll get the best update at the BASH on April 4, 2019 with Sen Stuart Ingle. Don’t miss this great event – register here.
A few of the latest highlights that could change at any moment:
- Removed Personal Income Tax (PIT) increase. Good news for most businesses and higher income earners, like doctors.
- Increase vehicle purchase tax to 3.5 percent (formerly in the bill at 4.2 percent)
- Charge GRT on online sales (as allowed by the 2018 U.S. Supreme Court ruling)
- Charge GRT to nonprofit hospitals (as is current practice with for profit hospitals)
- Increased working families tax credit
- Increased cigarette tax
Commentary on proposed legislation that would take more money out of New Mexico's Land Grant Permanent Fund, by NMBC follower David C. Williams, Ph. D.
In considering the wisdom of the proposed increased withdrawal rates from the Permanent Fund, it would be wise to remember that increasing the withdrawal rate from 5% to 6% will reduce the rate of growth (or increase the rate of decline) of the Fund, with the effect on the magnitude of the Fund being cumulative as time passes. The time will therefore come (which I call the "cross-over time") when a withdrawal of 6% will yield no more than would have a withdrawal of 5% if the rate had been left at that value; after the cross-over time, the fund with a continuing 6% withdrawal would still be yielding less than it would have with a 5% withdrawal if the rate had been left at that value. If we neglect for the moment the effect of continuing inflows to the Fund from various royalties, a little math shows that the cross-over time is about 18 years (18.23 years, in my simplified model). After that, the 6% withdrawal rate would be yielding less than would have been yielded by leaving the rate at 5%.
Commentary By Carla J. Sonntag
President and Founder, New Mexico Business Coalition
It’s admirable to see how hard our legislators are working. Whether I agree with them or not, they are focused on moving their agendas.
The question is whether or not those agendas are best for our state.