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Governor Richardson’s Predatory Tax Policy

Ok, by now everyone knows that the 2,000 mile jaunt that Governor Richardson is taking in June to New Hampshire is nothing more than the unofficial launch of his 2008 run for the White House:

New Hampshire has the first presidential primary in the nation, while Iowa has the first caucus.

New Mexico is among a growing group of states that has the third-nomination contest. Several presidential hopefuls have already visited New Hampshire to test the waters for the 2008 race.

“I’m going to run for reelection, and who knows beyond that,” said Richardson. “I’ve received a lot of invitations from around the country, and New Hampshire. I’m curious to see what kind of reaction I’ll get there.”

Ok, let me restate that. Apparently, everyone knows that except for our “humble” Governor. Now, how much do you want to bet that when Richardson speaks to the good folks in New Hampshire, he talks about the “tax cutting” he is doing in New Mexico. I wonder if he’ll give all of the gory details:

Although certain individuals and businesses will get tax relief, the bill signed by Richardson on Monday will provide a net increase in revenues for the state in the next two fiscal years [emphasis added]. It becomes a net revenue reduction for the state in the 2008 budget year, according to a bill analysis by the Taxation and Revenue Department.

How convenient? A tax deduction that increases revenue (always thought that was called a tax increase). This kind of counter-intuitive money management seems awfully familiar…

Oh, I know. It’s just like a Payday loan.

Now, if I remember this correctly from the Attorney General Madrid’s television ads, the way this works is individuals get a short-term advance to spend money that they don’t have. The result being that in a very short period of time they find themselves in a cycle of ever-increasing debt that practically guarantees they will end up in bankruptcy. Opponents of this practice were very adamant during the last legislation that this “predatory lending” must be stopped.

I wonder how they feel about Governor Richardson predatory tax policy?