SANTA FE, N.M. (AP) — A bill that would reduce personal income taxes across the earnings spectrum and collect more taxes on investment income passed the Democratic-led New Mexico state House on Wednesday.
The broad package of tax changes won House endorsement on a 48-21 vote and now moves to the Senate for consideration.
State government would forgo about $105 million annually overall through adjustments to personal income tax rates and brackets while collecting more taxes on investment income.
All income tax payers would see a decrease, with the greatest savings in dollar terms among middle-income earners, according to an analysis by the state Taxation and Revenue Department.
Annual income tax would decrease by $16, or 12%, to $136 for a couple with taxable income of $8,000, the agency said. A wealthier couple with an annual taxable income of $400,000 would save about $553, or 2.8%, on annual taxes of $20,042.
The bill from Democratic state Rep. Derrick Lente, of Sandia Pueblo, also includes tax credits and deductions aimed at shoring up the medical workforce in remote rural areas and easing the fiscal burden on child care and preschool providers.