Competing Bills In New Mexico To End Social Security Income Taxes

Above, the New Mexico State Capitol, the Roundhouse. Photo by Armand Vaquer.

There are competing bills in the New Mexico state legislature that would do away with income taxes on Social Security in the current session.

GoBankingRates has an article on these bills.

They start it with:

The battle over Social Security income taxes is playing out in the Land of Enchantment, as lawmakers in New Mexico consider doing away with the state’s taxes on Social Security benefits.

In New Mexico, personal income taxes apply to Social Security benefits on all but lower-income residents, U.S. News & World Report noted. Individuals earning up to $25,000 and joint tax filers earning up to $32,000 get a full exemption.

But legislators in the state have introduced competing bills to end the tax on Social Security benefits. Gov. Lujan Grisham last week threw her weight behind a bill from state Sen. Michael Padilla to enact a full and immediate tax exemption for Social Security income.

A separate bill from Sens. Bill Tallman and Martin Hickey would end taxes on Social Security income for everyone except higher-income households. A third bill, backed by gubernatorial candidate Rep. Rebecca Dow, would phase out state taxes on Social Security income gradually between 2022 and 2026.

New Mexico is one of 13 states that have some kind of tax on Social Security benefits, KRQE reported, citing comments from Dow. Critics say the tax hurts the state’s ability to attract more retirees, which is one reason there is bipartisan support to get rid of it.

It appears likely that one of these bills will pass and be signed by the governor. 

What would really help seniors is reducing or eliminating property taxes.

To read more, go here.