R P E N M
Retired Public Employees of New Mexico
Business Outlook Letter
Taxes, Legislature and the Governor
The following is a letter that was printed in the Business Outlook Section of the Albuquerque Journal on September 20, 2007.
Thursday, September 20, 2007
Letters to Outlook
Taxes, Legislature and the Governor
Around 20 years ago, the sages in the state Legislature sidestepped the Supreme Court ruling that stated if a state exempted its own retirees' pensions from state income taxation then it must exempt military retiree pay also. With greed as their guide, they determined that they were not going to lose all that tax money they could force military retirees to pay. As other states complied with the Supreme Court ruling— New Mexico was the only state to stop exempting their own retirees' pensions from state income taxation. To pacify these state employees and their union, in addition to their regular now taxable pensions, the state readily agreed to give them the best medical care plan around.
A few things happened to prove the fallacy of this action. The Legislature could not control military retirees as they left or shunned the state like poison. Many of the state's own retirees also moved to states that did not tax their pensions. Then medical care costs increased at phenomenal rates.
Military retired pay increased, representing a greater loss to the state. The state lost billions in the businesses these military retirees would have created, billions in the loss of taxation on their second incomes, and untold more billions lost as businesses shunned the state because it lacks the highly skilled work force these retirees represent.
During this administration, the Legislature has considered bills authorizing tax exemption on military retired pay intended to draw military retirees into the state in an effort to reverse these losses. The governor, who cannot understand why distinctive license plates and free fishing licenses offered to military retirees do not attract them, bullies legislators to insure these bills never pass. The 1.9 million military retirees nationwide and the service organizations they represent are aware of the governor's position towards military retirees in New Mexico. This does not bode well for his presidential aspirations.
Now we read that the state cannot afford to pay for all the health care promised their retirees. The first to make up the shortage will be the state's retirees themselves in higher co-pays, higher premiums and more costly prescriptions. Employee contributions will increase and finally we the public will chip in to further subsidize the program, just to keep it afloat.
It would have been in the people's best interest if the governor had the common sense to ensure his employees were taken care of first and funding for our highway system was in place before he committed to his choo-choo train, jet plane and state tax breaks to the moving picture industry. It is time we all learn that taxation and Richardson mean the same thing.
Norman J. Campbell
From ABQjournal.com, a service of the Albuquerque Journal
Letters to Outlook
Taxes, Legislature and the Governor
Around 20 years ago, the sages in the state Legislature sidestepped the Supreme Court ruling that stated if a state exempted its own retirees' pensions from state income taxation then it must exempt military retiree pay also. With greed as their guide, they determined that they were not going to lose all that tax money they could force military retirees to pay. As other states complied with the Supreme Court ruling— New Mexico was the only state to stop exempting their own retirees' pensions from state income taxation. To pacify these state employees and their union, in addition to their regular now taxable pensions, the state readily agreed to give them the best medical care plan around.
A few things happened to prove the fallacy of this action. The Legislature could not control military retirees as they left or shunned the state like poison. Many of the state's own retirees also moved to states that did not tax their pensions. Then medical care costs increased at phenomenal rates.
Military retired pay increased, representing a greater loss to the state. The state lost billions in the businesses these military retirees would have created, billions in the loss of taxation on their second incomes, and untold more billions lost as businesses shunned the state because it lacks the highly skilled work force these retirees represent.
During this administration, the Legislature has considered bills authorizing tax exemption on military retired pay intended to draw military retirees into the state in an effort to reverse these losses. The governor, who cannot understand why distinctive license plates and free fishing licenses offered to military retirees do not attract them, bullies legislators to insure these bills never pass. The 1.9 million military retirees nationwide and the service organizations they represent are aware of the governor's position towards military retirees in New Mexico. This does not bode well for his presidential aspirations.
Now we read that the state cannot afford to pay for all the health care promised their retirees. The first to make up the shortage will be the state's retirees themselves in higher co-pays, higher premiums and more costly prescriptions. Employee contributions will increase and finally we the public will chip in to further subsidize the program, just to keep it afloat.
It would have been in the people's best interest if the governor had the common sense to ensure his employees were taken care of first and funding for our highway system was in place before he committed to his choo-choo train, jet plane and state tax breaks to the moving picture industry. It is time we all learn that taxation and Richardson mean the same thing.
Norman J. Campbell
From ABQjournal.com, a service of the Albuquerque Journal