New Mexico has the Most Improved Tax Fairness of Any State

New Mexico has the Most Improved Tax Fairness of Any State Changes Over the Past Few Years Have Made Our State and Local Tax Code More Equitable New Mexico now has the ninth most progressive tax system in the nation as ranked by the Institute on Taxation and Economic Policy’s recently updated Who Pays? report on tax incidence. [...] As shown in the dotted, light-yellow bars in the graphic, those who earned the lowest incomes in New Mexico used to pay more than 12% of their income in state and local taxes, while those at the very top paid less than 8%. [...] An of color are disproportionately more likely to earn lower expanded exemption for Social Security income helped incomes than white people due to institutional and those in the upper-middle income categories, while a systemic racism and discriminatory policies in areas such reduction to the preference for capital gains income and as housing, financing, hiring, and the workplace, that a new top in. [...] While the tax code is vastly improved for those earning Fortunately, New Mexico’s Legislature and Governor the lowest incomes, there is still work to do to address have made many improvements to our tax code (shown lingering regressivity at the upper end of the income in the gold bars on the first graphic) that have advanced scale, as those at the very top still pay the next lowest equity in New M. [...] TAX FEATURES DRIVING THE DATA IN NEW MEXICO Requires combined reporting Refundable Working Families for the corporate income tax Tax Credit.