New Mexico State Victories
The following NFIB victories will make a real difference for your business.
Recent NFIB/New Mexico victories:
Defeated statewide minimum wage increase, keeping New Mexico's small businesses competitive with surrounding states
The legislature and Gov. Bill Richardson proposed raising the state minimum wage to $7.50. This increase would have put New Mexico small businesses at a disadvantage against out-of-state competitors. It would also have encouraged New Mexico small businesses to move out of state.
Cut income and capital gains taxes, saving small-business owners $360 million
NFIB/New Mexico helped pass $360 million in cuts in both income and capital gains taxes. The move cuts the top individual income tax rate from 8.2 percent to 4.9 percent over five years; it also cuts capital gains taxes by 50 percent. Tax situations vary; however, a single business owner with $200,000 in taxable income could save $4,600 per year when this is fully implemented. A married owner at the same taxable income would save about $1,600.
Defeated single-payer, government-run health care system, keeping health-care decisions in the hands of small-business owners
Proposals have called for all insurance payments -- individual and business premiums, Medicare and Medicaid payments, and state and local government premiums -- to go into a "pot" to be used by state government to pay for all medical costs. This would create a government-controlled health-care system similar to that of Canada or Cuba. Experience elsewhere indicates the government always raises premiums or rations services under this type of system.
Limited state government's eminent domain authority
The U.S. Supreme Court Kelo decision confirmed government authority to condemn private property for use of economic development. The Supreme Court, in the same case, recognized the right of state legislatures to limit that authority in their own states. NFIB helped pass legislation to limit the eminent domain authority of state and local governments in the last legislative session.
Cut income and capital gains taxes by $360 million
NFIB/New Mexico helped pass $360 million in cuts in both income and capital gains taxes. The move cuts the top individual income tax rate from 8.2 percent to 4.9 percent over five years; it also cuts capital gains taxes by 50 percent.
Defeated single-payer, government-run health-care system
Every year proposals are introduced to establish this costly and ineffective health-care system. Proposals have called for all insurance payments -- individual and business premiums, Medicare and Medicaid payments, and state and local government premiums -- to go into a "pot" to be used by state government to pay for all medical costs in the state (state government becomes the "single payer").
Blocked a five-cent per gallon gasoline tax
The legislature rejected, by a single vote, a proposal to increase the gasoline tax by five cents per gallon for 10 years. NFIB's lobbying efforts helped swing several votes on this critical issue. This bill, if passed, would have had significant impact on NFIB members who rely on delivery or service vehicles.
VICTORY: The 2003 Legislature enacted a major income tax cut supported by NFIB. The new law cuts the top income tax rate from 8.2 percent to 4.9 percent and cuts capital gains taxes by 50 percent. The new rates will be phased in over five years. The total tax cut will be $360 million per year when it is fully implemented. The lower top rate makes New Mexico competitive with Arizona and Colorado for the first time.
VICTORY: Vigorous opposition from NFIB/New Mexico helped kill a bill that would have gutted New Mexico's employment-will-law. The "Paycheck Protection Act" would have prohibited employers from laying off employees if the economy worsened, or if competitive conditions created economic hardship.
New Governor Bill Richardson has promised to cut taxes, and NFIB is working hard to ensure that any changes in the tax system benefit the small business community.
HOT BUTTON: The New Mexico Legislature is considering a bill that would cut New Mexico income taxes by $84 million. The bill would remove several thousand low-income New Mexicans from the tax rolls entirely and reduce the top income tax rate from 8.2 percent to l7.9 percent.
VICTORY: Vigorous opposition from NFIB/New Mexico helped kill the Paycheck Protection Act. The bill would have prohibited you from laying off employees if the economy turned down or of you faced increased competition. The bill would have gutted New Mexico's employment-at-will law.
2001:
Employee Relations: The legislature killed identical bills introduced in the House and Senate by Rep. Ray Ruiz (D-Albuquerque) and Sen. Linda Lopez (D-Albuquerque).
The "Paycheck Protection Act" would have prohibited firing from firing employees for any reason other then job performance. Employers could not have laid off employees because of a business downturn caused by a poor economy, a new competitor or loss of a major customer.
The "Job Protection Act" would have required employers to give employees 180 days notice and job retraining if their jobs were transferred to "low wage" countries.
2000:
Unemployment Insurance Rates Cut: An unemployment Insurance rate cut of $31 million, an NFIB priority for the session, was signed into law by Gov. Gary Johnson.
Catastrophic Care Health Insurance: An NFIB-sponsored "catastrophic care" health insurance bill designed to lower costs for small businesses was introduced and passed the House.
Minimum Wage Increase: Gov. Gary Johnson vetoed a bill sponsored by Sen. Phil Maloof (D-Albuquerque) and opposed by NFIB, which would have increased the state minimum wage from the present $4.25 per hour to $6.15 by July 1, 2003. Gov. Johnson had vetoed a similar bill, also sponsored by Sen. Maloof, after the 1999 legislative session.
Family Leave: NFIB also helped kill a bill allowing parents to draw Unemployment Insurance benefits for up to one year to take care of new children.
1999:
Single Payer Health System: Quick action by NFIB members helped kill a bill that would have made the state the sole-source provider of health care insurance in New Mexico.
Mental Health Parity: NFIB discussions with Governor Gary Johnson resulted in a veto of a mental health parity insurance coverage mandate.
Minimum Wage Increase: Governor Gary Johnson vetoed a bill sponsored by Senator Phil Maloof (D-Albuquerque) and opposed by NFIB/NM increasing the state minimum wage to $6.15 per hour by July 1, 2002. Also, the Senate Corporations Committee killed a "living wage" bill sponsored by Senator Linda Lopez (D-Albuquerque) that would have raised the state minimum wage to $9 per hour.
1998:
Labor Unions: Rep. Kip Nicely (R-Albuquerque) introduced a bill to prohibit labor unions from using dues money for political purposes without the prior approval of union members. The bill required written authorization from union members and creation of a separate political action committee account for political expenditures by unions. The bill died on its first hearing in the House Labor committee.
Unemployment Insurance: An Unemployment Insurance rate cut bill, sponsored by NFIB member Rep. Jerry Sandal (D-San Juan), resulted in $40 million in savings for New Mexico businesses. The bill cut rates by 33 percent to 66 percent over two years, with a long-term 10 percent reduction.
1997:
Whistleblower Protection: The legislature, with help from NFIB/New Mexico, killed the Whistleblower Protection Act sponsored by Rep. Max Coll (D-Santa Fe). The bill would have prohibited businesses from firing employees who reported their employer for violating a law or regulation. The bill would not have required the report to be true, and would have even protected reports made directly to the news media.
1996:
Minimum Wage: NFIB, supporting the power of the marketplace to set wages, helped kill an increase in the state minimum wage.
