Martinez Vetoes Corporate Tax Overhaul
SANTA FE, N.M. (AP) — Republican Gov. Susana Martinez has vetoed a proposal to revamp the tax treatment of certain multi-state corporations and slightly lower New Mexico's top corporate income tax rate.
The governor said Tuesday she vetoed the proposal because it will raise taxes on some companies, hurt the state's economic competitiveness and increase the cost of some goods purchased by New Mexicans, including food and clothing.
Supporters of the bill, including labor unions, contend it would have stopped "big box retailers," like Wal-Mart Stores Inc., from avoiding taxes by shifting income to subsidiaries in other states.
The measure would require large retailers to combine the income from their nationwide operations in determining what is subject to New Mexico taxation. It also would lower the corporate tax rate 7.5 percent from 7.6 percent.
The Communication Workers of America issued this release in response to the veto:
Governor Susana Martinez today vetoed the interests of hundreds of thousands of New Mexico small business owners and working families today by rejecting SB9 – the Corporate Fair Tax Bill. This popular bill would have dramatically boosted revenue by changing the state’s tax code to ensure multi-state corporations doing business in New Mexico pay their fair share of corporate income taxes. New Mexico is—and will now remain—the only western state to operate under this imbalanced tax structure.
The decision to veto the legislation leaves no doubt in voters’ minds who Susana Martinez supports and whose interests she will ignore. The Governor’s veto comes after thousands of New Mexico residents placed calls and sent letters to her office urging her to stand with small businesses and working families in the state.
“Our state misses out on tens of millions of dollars in revenue every year—revenue that every other western state currently collects—because big out of state corporate interests maintain a lockjaw grip on the capitol,” said Michael O’Reilly Proprietor of Pranzo Italian Grill in Santa Fe. “Susana Martinez had an easy opportunity today to change that balance of power and give New Mexico small business an opportunity to succeed. She chose not to level the playing field so that every business, not just businesses incorporated only in New Mexico, pays state income tax to benefit our municipalities, schools and roads. Her corporate pandering is our loss.”
Copyright 2012 The Associated Press.