So, who wants to raise our taxes? If you’re a legislator in Santa Fe eager to raise taxes on small businesses in New Mexico, raise your hand. No, better yet, just scribble your name on top of the proposed new tax bill.
Oh, sure I understand how some readers might think that this is a tax on the rich, but that’s because they don’t understand how most small businesses are set up. They are usually limited liability companies or sub chapter S corporations. That means that the profit from their company ends up on their personal income tax filings.
Now with banks being tight on lending (despite bailouts from taxpayers), most profitable small businesses are keeping those retained earnings in their company to keep their doors open and hold onto their key employees. But, that last lifeline is about to be raided by legislators and the administration in Santa Fe because it’s easier to force more layoffs in the private sector than to cut unnecessary spending in public sector.
After all, who is going to notice if one more small business is forced to close their doors? Well, the answer is I will, and I sure hope you feel the same. If you find your legislator’s signature on this additional tax on small business, I hope you’ll give them a call and ask them to get their priorities straight. If you don’t know what your legislator’s signature looks like, no problem, you can download this PDF of the entire bill along with the document they signed to kick off the session.