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Learn more about the impact of HB 11: Working Families NM Take action against the proposed tax increase: No Tax NM |
House Bill 11 proposes a $450 million tax on working New Mexicans, projected to increase to $545 million by 2031. This substantial financial imposition is not a trivial matter. For our small and medium-sized businesses, many of which operate on slim margins, this additional cost could mean the difference between thriving and closing their doors. Small businesses are the backbone of our local economy, fostering innovation, creating jobs, and sustaining communities. An unexpected and steep tax increases their operational costs, making it harder to compete, invest in growth, and offer competitive wages and benefits to employees.
Moreover, the financial strain imposed by House Bill 11 could lead to higher prices for consumers. Businesses facing increased costs often pass these expenses onto customers, contributing to inflation and reducing the purchasing power of hardworking families across the state. In a time when many New Mexicans are already grappling with rising living costs, adding another financial burden is both counterproductive and unfair. The projected increase of the tax burden to $545 million by 2031 only exacerbates these concerns. Over time, the cumulative financial impact could stifle business expansion, deter new investments, and slow job creation. In an increasingly competitive national and global market, New Mexico cannot afford to implement policies that undermine our economic resilience and attractiveness to both businesses and talent. Additionally, House Bill 11 places a one-size-fits-all solution on a diverse workforce with varying needs and capacities. Not all workers and businesses have the same ability to absorb additional costs without adverse effects. Flexibility and tailored approaches are essential to address the unique challenges faced by different sectors and communities within our state. Blanket taxes fail to consider these nuances, leading to unintended consequences that may harm more than help. It is also important to note that while the goal of providing paid family and medical leave is noble, there are alternative approaches that do not impose such a heavy financial burden on our workforce and businesses. Incentivizing voluntary participation, providing tax credits for businesses that offer leave benefits, and exploring public-private partnerships could achieve the desired support for workers without the detrimental economic impact of House Bill 11. |
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