New Mexico delegation split on GOP tax cut plan

Press Release

The lone Republican in the New Mexico congressional delegation has described the "Tax Cuts and Jobs Act" unveiled Thursday in the U.S. House of Representatives as a boon to middle-class families and small business, while Democrats in our delegation see the plan as helping primarily the most wealthy.

According to The Associated Press, the tax plan would reduce the number of tax brackets from seven to four and simplify the process for individual filers; cut the corporate tax from 35 to 20 percent; double the standard deduction and increase the child tax credit; eliminate or limit numerous deductions including those on state and local taxes and home mortgages; and phase out the estate tax, among other things. It would also add $1.5 trillion to the nation's debt over the next 10 years.

House Republicans who crafted the budget have set an ambitious timeline of getting a bill to President Trump's desk by Christmas.

In a prepared statement, Rep. Steve Pearce, R-N.M., said the bill will "provide relief for small businesses, empower the middle-class, and create more jobs for hard-working Americans.

"By lowering the corporate tax rate, manufacturing can once again return to the United States, bringing with it good-paying jobs for people across the nation." Rep. Steve Pearce, R-N.M

"This plan lowers the individual tax rate for lower- and middle-class families, and reduces the tax rate for small businesses so more money is spent on expanding operations and hiring and paying workers. By lowering the corporate tax rate, manufacturing can once again return to the United States, bringing with it good-paying jobs for people across the nation," Pearce said.

Sen. Tom Udall, D-N.M., acknowledged that Americans want a simpler, fairer tax system, but he said the Republican plan fails to meet that goal.

"Based on what I've seen, the Republicans have widely missed that mark," he said in a prepared statement. "Instead, this bill would allow corporations and the richest 1 percent -- people making over $733,000 a year -- to continue to see the biggest benefits. And it would make the rest of the country pay for it."

"We need to make sure the tax code is working for everyday New Mexicans, growing the economy, creating good-paying jobs, and supporting families and communities across the country. This GOP plan is a setback on almost every level." Sen. Martin Heinrich. D-N.M.

Udall also took issue with the process Republicans used in drafting the bill.

"It was crafted without any consultation with tribal leaders, even though it would almost certainly force major cuts to programs that Indian country relies on, and that lie at the heart of the federal government's trust responsibility to tribes," Udall said. "This bill is also full of shady political gifts to special interests -- from a backdoor measure to open the pristine Arctic National Wildlife Refuge to drilling, to a provision that would eliminate longstanding campaign finance protections that have prevented secret political donors from abusing tax provisions intended to benefit charities."

Sen. Martin Heinrich. D-N.M., agreed.

"The details of the secretive Republican tax proposal emerging today reveal a plan that does very little for working families and may even increase their tax burden, while providing deficit-busting giveaways for others that bankrupt our ability to invest in a stronger economy tomorrow," he said. "We need to make sure the tax code is working for everyday New Mexicans, growing the economy, creating good-paying jobs, and supporting families and communities across the country. This GOP plan is a setback on almost every level."

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