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Richardson: Tax hikes unavoidable
Steve Terrell | The New Mexican
Posted: Monday, November 02, 2009
- 11/3/09
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Although he's campaigned both for president and governor as a tax-cutting Democrat, Gov. Bill Richardson told reporters Monday that tax increases are "inevitable" during the next legislative session because of the budget crisis.

"It's very painful," Richardson said. He said he'll soon be appointing a committee to study the best ways to raise revenue.

Richardson declined to say which tax hikes might be approved in the Legislature. "Nobody likes them, but we're going to have to have them," he said.

If it's true that tax increases might be seriously considered next year, it would be the first time in at least 15 years that raising taxes has been seriously discussed in New Mexico. When Richardson took office in 2003, cutting personal income taxes and capital gains taxes were among Richardson's chief priorities. He said these actions would help attract high-paying jobs to the state. And in the eight years prior to Richardson, his predecessor, Gary Johnson, made low taxes and small government his hallmark.

In the days leading up to the recent special session, Richardson made it clear he would oppose any move to repeal his tax cuts — as unions, the New Mexico Conference of Catholic Bishops and various other advocacy groups are calling for.

During the special session, several liberal Democrats complained that Richardson had "tied our hands" by his proclamation that said lawmakers couldn't consider tax increases. "Where was he during the special session?" was the response of one Democratic lawmaker when told about Richardson's statement that tax increases are inevitable.

Richardson at the news conference acknowledged such criticism. Referring to meetings before the session, Richardson said, "I sat here with legislative leaders, and they all agreed we wouldn't have any tax increases this session. Because if we're gonna have (tax increases), we're going to do it in a methodical, practical, positive way." He said there will be more time to study taxes before the regular 30-day session that begins Jan. 19.

Terri Cole, executive director of the Albuquerque Chamber of Commerce, who attended the news conference, thanked the governor for "prohibiting tax increases" during the special session.

Richardson will find no lack of sponsors next year for tax increase ideas.

State Rep. Brian Egolf, D-Santa Fe, who during the recent special session introduced measures to raise taxes on alcohol and tobacco as well as the motor vehicle excise tax, said he'll carry similar measures again in 2010.

Egolf said he expects public support for the increases, in the face of the state's budget crisis.

"These taxes have broad public support as a means to provide the revenue we need to fund our children's education. The taxes on cigarettes will have the added benefit of reducing teen smoking and reducing smoking-related deaths in the future," Egolf said.

Increasing the state tax on cigarettes by $1 a pack would generate almost $33 million a year for the general fund, while increasing the cost of alcohol by a dime a drink would bring in about $66 million annually. Raising the motor-vehicle excise tax by 1 percentage point could generate almost $70 million a year.

Anti-smoking advocates recently have pushed for a dollar-per-pack increase in the cigarette tax, which they say a majority of smokers supported in a recent poll.

"Saving health and social programs that serve kids and families with a tax that intrinsically helps kids and families by decreasing smoking sounds likes a great idea to us," said Traci Cadigan, New Mexico government relations director for the American Cancer Society Cancer Action Network. Attempts to tack a tax on junk food and soda are also possibilities, lawmakers have said.

The idea of raising taxes drew some immediate criticism by Republicans.

House Minority Leader Tom Taylor, R-Farmington, said before there's any talk of tax increases, the Legislature should look at reducing the size of the government. "The state government has grown tremendously," Taylor said in an interview. "We should talk about how big New Mexico's government has to be to provide the services that people need. You have to make priorities. Until we do that, I wouldn't support a single drop of increase in taxes."

One of the four GOP candidates for governor issued a news release Monday afternoon about Richardson saying increases are inevitable.

"Raising taxes on New Mexicans during a historic recession to subsidize the waste, fraud, and abuse taking place in the Roundhouse is completely unacceptable and totally inexcusable," said Susana Martinez.

Richardson is wrestling with a budget bill passed by the Legislature during the recent special session. He reiterated at his Monday news conference that he believes the bill is flawed. But he said he doesn't want to veto the entire bill, which calls for budget cuts. He said one possibility is vetoing the section that calls for a 7.6 percent cut for agencies under his control. "There will be serious cuts," he said.

He has until Nov. 12 to act on the bill.

Reporter Kate Nash contributed to this report.

Contact Steve Terrell at 986-3037 or sterrell@sfnewmexican.com. Read his political blog at
roundhouseroundup.com.


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Comments (32)
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Bill In Santa Flush   (posted on 11/9/2009)
"G.R.I.P." Goofy Richardson Ignorant Projects
Fred Stokes   (posted on 11/8/2009)
They can also cancel the Lujan interchange to nowhere and save millions.
Greg Hesch   (posted on 11/6/2009)
Come On! who could not see this coming? Green Chile Cheese Burger Bill has been spending money with reckless abandon for years. The G.R.I.P. has been nothing more that self achievment award, for himself. My wife is now facing imposed furlows from her State job, so that Bill can maintain his high paid appointees, to do things like pick out colors for the overpasses, My daughter has PE once every two weeks because the schools can't afford it, yet fat boy takes a new jet every where, and runs for office while in office. This is all part of Bills great legacy because he cares deeply for the people of New Mexico, and not just making a name for himself. Summation: Lies! Lies! Frekin Lies! Can't wait until he is gone.....
Don Walk   (posted on 11/6/2009)
Over a Billion dollars in the red under the Liberal Democrats Administration for the past two years, yet the Liberal Democrat Sheep are still standing up, trying to protect "Three Dollar Bill", lol! Don't stop spending, just take more from the "Little People" so we can continue our Pork barrel Projects. Unemployment over 10% now and not one thing has been accomplished by the B.O. Administration to curtail it or even slow it down. Except for 4 or 5 announcements that the recession has ended, lol. But, those announcements did surround Biden's declaration of "Well, we kind of guessed wrong"! Over one billion in the red and eliminating "Double Dippers" is the answer? That is only about 27 million! Don't take me wrong, they still need to be eliminated. The problem is so big that "Stop Spending" is the only answer. For you sheep advocating raising taxes, let me provide you with a pen so you can write out a voluntary check to the tax commission - feel free to give any amount you want. Personally, I would rather see famlies hang on to their hard earned money and provide for their own children, spouses and needs. I know that is a difficult concept for Democrats, but try and think about it! Now, would you tax advocates please provide us with what the B.O. Administration has done to try and revive the economy - you should be completed with your list by now, lol! So far they have; 1. The cash for Clunkers program which was a complete failure. 2. The expanding of the government and the hiring of additional government employees, with no regards as to how to pay for this expansion. 3. Tripling the National Debt, placing our children and grandchildren in debt for their lifetimes and claiming that "Bush started it"! 4. Government take-over of the auto industry, banks and wall street. An attempt to take over the Health Care Industry, claiming to be able to provide health care for everyone but having the individual costs stay almost identical to what they are through private insurance. But, they will fine those who don't purchase the government insurance (because they cannot afford it) the same amount as it would have cost to purchase the insurance in the first place??? That my friends is government mentality at work for you, lol. Now, someone please complete the list. B.O. has given the economy the same attention he has given your freedoms, which is non-existent. The only people more unable to think for themselves than N.M. Democrats are those Democrats in California still re-electing the same politicians who destroyed California's economy.
Steve van Dresser   (posted on 11/4/2009)
Why thanks, Bill. Coming from a right wing nut case, I consider that a compliment.
oh please   (posted on 11/4/2009)
Hey Bill in Santa Flush. That's the greatest idea i've heard yet. Your idea made my day. Except one thing. It should not be divided amongst the ALL registered dems, but all dems and republicans in the house and senate. The entire dem and repub administration. These two parties BOTH have got us in this mess. Both are chicken sh i t s when it comes to stadning up to old Green Chile cheesburger bill. None of them including the Lt. Governor. Most of all the Lt. Governor. She's the most chicken sh i t t of all.
Bill In Santa Flush   (posted on 11/4/2009)
Steve van Dresser is one ignorant ID10T!
Bill In Santa Flush   (posted on 11/4/2009)
Solution for debt. Take the $450 mil debt and divide it between all the registered democrats for a one time payment. Bingo don't have to raise taxes and the $bill debt is repaid.
oh please   (posted on 11/4/2009)
I think Drive By Poster has some very good ideas. Except maybe the railrunner I don't agree w/putting in hold altogher but it could decrease the amount of travel by half. Definately sell the jet, definetaly get rid of the double dippers and definately get rid of 2/3rds of the Gov-Ex employees. Once these are done - then lets talk tax increase, fulough's, etc, etc.
Drive By Poster   (posted on 11/3/2009)
why don't we 1) PUT ON **HOLD** THE RAIL RUNNER TRAIN FOR A FEW MONTHS. JUST PARK IT WITH IT ON A MONTHLY MAINTENANCE TO KEEP IT READY TO GO. THAT WILL SAVE US TENS OF MILLIONS OF DOLLARS, AND THEN 2) SELL THE PERSONAL LUXURY JET BILL RICHARDSON BOUGHT. WE **DON'T** NEED A PRIVATE JET FOR SHUTTLING NM POLITICIANS. AND THEN FINALLY, 3) SUBMIT LEGISLATION TO **ELIMINATE** THE DOUBLE DIPPERS. (the people who have retired, but haven't even cleaned out their desks, but are now **AGAIN** on the NM payrolls.) #3 is just OBSCENE. how about it bill???? remember bill.. you were such a scumbag that you wouldn't even FORGO your salary when you are out galavanting around the country pretending people liked you and you could become president. you REFUSED to give up your salary when you were out of state! even george (w)orthless bush gave up his salary when he was campaigning in 2000 out of state. absolutely AMAZING. george w bush had more INTEGRITY than bill richardson! i NEVER thought i would say that. LOL!
Raul Fierro   (posted on 11/3/2009)
Hmmm. The NM State budget used to be around 4 billion. Under Richardson it went up to around 6 billion. Oil & gas revenues have always been cyclical. A more fiscally responsible administration would have spent more wisely knowing this. Two personal chefs, a practically private jet, trains, spaceport, 500+ highly paid personal appointees, and a failed bid for Prez, etc. aren't cheap. Bush was a miserable failure and bears responsibility for the results of his two terms (shouldn't Bill too for his?) but hey Clinton pushed NAFTA (driving millions of Mexicans north and wages here south) and signed off on financial deregulation between his trysts and pimping the WH. There's plenty of blame to go around.
David Martinez   (posted on 11/3/2009)
Yes, it all Bush's fault. The oil war should have lowered the price of oil, which would have really screwed the NM state government, which depends largely on oil royalties for its funding. That backfired, and fear of instability made the price of oil skyrocket. That windfall for the state coffers went toward boondoggle after boondoggle, and what went into investment crashed and burned with the stock market. Now the price of oil is low relative to a year ago, and the state, which overspent, counting on high oil prices forever, is now in big trouble.
Steve van Dresser   (posted on 11/3/2009)
Anybody who thinks the government shortfall is due to overspending has been asleep for the last two years. The shortfall has been entirely due to the loss of revenues caused by the Bush Recession of 2007 which continues today. The wealth, income, and standard of living for Americans have plunged because of the economic policies fostered by the last administration. It should come as no surprise to any reasonably intelligent person, that tax revenues have also plunged. It will take decades to repair the damage to the American economy caused by unfettered greed and enabled by laissez faire government policies. New Mexico has not been exempt from the consequences of bad national policies.
Bill In Santa Flush   (posted on 11/3/2009)
Raul Fierro, Guess you blame the schools? BS, it's the parents. garbage in = garbage out!!!!????????????????????????????
Ambro A   (posted on 11/3/2009)
Bill! It`ll never happen as long as the almighty fiat paper dictatorship rules. Any new blood will continue to lick their lord`s scrotum. That`s all they know to do.
Bill In Santa Flush   (posted on 11/3/2009)
Looks to me like it's time to throw all the bums out! Bingaman, Lujan, Udall, and all the hacks in the round house!
Ambro A   (posted on 11/3/2009)
The die has been cast. Big Business runs big Government,which feeds big Business, whom runs big Government, which feeds big business, whom runs big Government, which feeds Big Business, whom runs big Government,which feeds big Business, whom runs big Government, which feeds big business, whom runs big Government. Rather incestuous, Would`t you say?
oh please   (posted on 11/3/2009)
while i agree tax increases are needed what's the point of telling us new mexican's that New MExico has 1.6 billion in savings for a rainy day? Is this not a rainy day? Why would we not tap into this so called rainy day money? Or, do i dare say there is NO rainy day money? Were we all lied too?
Bill In Santa Flush   (posted on 11/3/2009)
Ed, The bloated gov't has enough money. They need to spend wisely, but with dumb a*s*ses running the gov't they can't live within a budget!
Bill In Santa Flush   (posted on 11/3/2009)
Which is better? Big Business or Big Government? Cut the poo $bill and fire half the bloated gov't employees. We don't need 50% of the slackers. Took two people from the tax department to deliver me a paper to sign so they could raise my property taxes!
Arlin Givens   (posted on 11/3/2009)
Finally. Public ecognition that when state expenses increase, state income must increase. Just check with anyone working two jobs. Thje article states that it has been 15 years since the state increased taxes. How many of us could live today on our income of 15 years ago? Certainly there are areas where expenses can be reduced, but the state income must increase in some manner. Increasing taxes on alcoholic beverages and soft drinks will help some. So will rescinding the tax break for incomes over $250,000 annualy as well as taxing some of the profits of big box stores that currently go out of state. It would be good if some working person could be appointed to the group studying the tax structure but what worker can take time off to attend the numerous meetings that will be required?
Rex Pierson   (posted on 11/3/2009)
Another campaign promise kept, huh? I guess he's just following the leader.
Raul Fierro   (posted on 11/3/2009)
What exactly would you like to know about us Ed? You're trolling here too. I bet you make your living off of taxes. The status quo must be working for you. We are participating, you just don't like what we have to say. I vote and donate too. How much money has been thrown at Education? And half the kids still aren't graduating - that's contemptible.
Ambro A   (posted on 11/3/2009)
With the private sector virtually a dead man walking. Increasing excise taxes will only scratch the surface, and will do little to maintain NM`s budget. Most every state has begun taxing everything in site. The race is no longer to the bottom. The race is now to the top.
Gil Garduno   (posted on 11/3/2009)
"raping the earth".......Go ahead Ambro, raise taxes on the evil wealthy, see where the jobs go, see where your liberal agenda takes you...That being said, if you read the article, increasing the automobile excise, tobacco, and alcohol taxes is far from targeting the rich!
Ambro A   (posted on 11/3/2009)
Besides, since Americans seem to love, and worship at the feet of "successful" effluent people. I would imagine wealthy people would return the love to their loyal sycophants, by throwing some crumbs back their way. Aren`t the rich also human beings?
Ambro A   (posted on 11/3/2009)
What`s the problem with raising taxes on the wealthy? They sure had a good run raping the earth for the last decade or more. I`d think they would be more than happy, and honored to give back a little.
David Martinez   (posted on 11/3/2009)
I think that the teabaggers, as well as most Republicans, would rather see their tax dollars go toward education than toward a useless train and spaceport, among other democrat boondoggles.
CB Kay   (posted on 11/3/2009)
It mentions in the article that Cheeseburger Bill previously stated that not raising taxes would attract high paying jobs to the state. Well, now that all his little friends have their high paying jobs, courtesy of him, I suppose it makes sense that it is now time to raise taxes.
Ed Campbell   (posted on 11/3/2009)
I'm always curious about the tawdry lives of those who prefer to whine rather than participate in progress. Taxation flows from representation in the first place. The teabagger mentality - would rather give up education for future generations than pay a minimal increase in taxes - I find astounding. Well. more like contemptible because they think the whole world revolves around their self-centered universe.
Diane Rivera   (posted on 11/3/2009)
Raising taxes on New Mexicans during a historic recession to subsidize the waste, fraud, and abuse taking place in the Roundhouse is completely unacceptable and totally inexcusable," said Susana Martinez. Well said.
Raul Fierro   (posted on 11/3/2009)
It'll be painful alright, but not for big spending Big Bill. He sure knows how to back stab. Just ask Hillary and Bill. The Guv is set up for life. What did NM get out of the deal? High salary appointed jobs for donors, no resume no nada. Oh yeah, failed investments too, unless you were CDR brokering failed investments. And for the rest of us? What did we get? TAX HIKES. Appointing a committee to study how to best raise taxes. Well he is good at appointing isn't he? It's our money NM. You get who you vote for.


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