Denish Applauds Veto of Food Tax

Albuquerque, N.M. – Lt. Gov. Diane Denish today applauded the veto of the food tax, which would target middle-class New Mexico families, and continued to call for cost-saving reforms to make government more efficient.

From Day One, Denish has called on the Legislature to implement all possible cost-saving reforms before even considering regressive taxes on working families. Yesterday, Denish proposed a series of additional reforms to save taxpayers an estimated $450 million over five years through efficiencies, cuts, consolidations and smarter government.

On today’s food tax veto, Denish issued the following statement:

“With so many New Mexicans struggling to put food on the table, a new tax on food is absolutely the last thing our families need. As I’ve said from Day One, the Legislature should have done everything possible to cut costs and make government more efficient before even considering regressive taxes that target working families. Unfortunately, that didn’t happen. As Governor, I’ll do things differently. I’ve put forward a plan to save taxpayers $450 million over the next five years. By consolidating agencies, eliminating cabinet positions, cutting political appointees and spending more wisely, we can save the taxpayers millions. New Mexico families are tightening their belts; it’s time state government did the same thing.”

To read more about Diane's reform plan to save taxpayer’s $450 million, visit: http://www.dianedenish.com/issues?id=0010

In addition, Denish was the first candidate for Governor to speak out against the food tax, issuing the following op-ed in December.

Food Tax Would Hurt New Mexico Families

Lt. Gov. Diane Denish
December 2009

For many New Mexico families, budgets are tighter this holiday season than last – which means fewer gifts under the tree. But for other families, simply getting by is a struggle. During these difficult times, a broad-based tax on food to fix the budget shortfall is a bad idea and I will not support it, plain and simple.

Our state is facing serious budget challenges, no doubt about it. But we must not balance the budget on the backs of regular, hard-working New Mexico families. And when nearly one in four New Mexico children go to bed hungry, making it more difficult for their parents to buy basic food is simply unconscionable.

So when the Legislature convenes next month, where should lawmakers look to close the budget gap?

First and foremost, before anyone starts debating tax increases, legislators must do everything possible to make sure government is leaner and more efficient. They must not ask for more tax dollars until they can show that the tax dollars already coming in are being spent as efficiently as possible. I’ve proposed several areas where reform is needed, including overhauling the capital outlay system and ending the practice of double-dipping. Others have proposed additional reform ideas that require thoughtful consideration.

Once all possible reforms are debated and implemented, legislators should look to see who is gaming the system at the expense of the taxpayers. Right now, a loophole exists in New Mexico law that allows big, out-of-state corporations to get special breaks at the expense of New Mexico families and businesses. Haven’t we seen enough of these kinds of special breaks on Wall Street? We certainly want to create incentives for employers to create jobs, but New Mexicans are sick of these loopholes for the big guys – that’s a big part of what got our nation into this economic mess in the first place.

These are just a few ideas for reducing the state’s budget shortfall and I’m open to other good ideas as well.

But before legislators convene in January, they should send a clear message to New Mexicans that the food tax is off the table. We simply can not, in good conscience, support higher taxes on basic necessities at a time when so many families are struggling to get by.

I urge New Mexicans to contact their legislators and encourage them to oppose this costly, harmful tax increase.