As part of an ongoing series examining campaign commercials, Steve Terrell of the Santa Fe New Mexican has debunked the efforts of Gov. Bill Richardson’s campaign to convince voters that he’s a tax cutter.
The article in today’s edition of the newspaper notes that, days after the primary election,
“That’s why we got rid of taxes on food and medical services. We cut the capital-gains tax and cut income taxes for every New Mexican. At the same time, we audited every government agency, cut the waste and saved millions, and added to the rainy-day fund.”
“Some people said we couldn’t get rid of those taxes. But I think we’re getting along just fine without them,”
Notice that he didn’t tell you during the commercial how the state paid for the tax cuts. He seems to imply that cutting government waste allowed the cuts.
Terrell tells the real story. The same bill that eliminated the gross-receipts tax on food and medical services increased the tax rate on other goods and services within municipalities.
The capital-gains tax was reduced by 50 percent, as were income taxes.
But many other fees and taxes have increased, including motor-vehicle registration, hunting and fishing licenses, cigarette taxes, truck fees and tire-recycling fees, Terrell reminds us.
Overall, it’s hard to say whether we’re paying more or less in taxes and fees. When I inquired of the
As for the auditing: Terrell notes that not all of the audit team’s suggestions were implemented, but many were. When the governor claims to have cut government waste, I’d also note the allegedly illegal hirings he has made without legislative approval.
Last, as Terrell noted, the rainy-day fund has increased during