How could Gregg Hull's proposal to phase out the state income tax affect Michelle Lujan Grisham?
Hull's tax phaseout plan threatens New Mexico's $2 billion revenue stream Gregg Hull's proposal to gradually phase out New Mexico's personal income tax system would eliminate a significant source of state revenue, estimated by the Legislative Finance Committee to reach around $2.25 billion over the current fiscal year. As Governor, Michelle Lujan Grisham is responsible for managing the state's budget and policy. The proposal, which could ultimately cost the state more than $2 billion per year if fully implemented, forces the administration to confront a massive fiscal shift and the need to re-evaluate state programs and revenue generation.
- Effect
- Strong negative
- How direct
- Brind's reasoning
- When
- Within months
- The story
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How it reaches Michelle Lujan Grisham
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Gregg Hull, a House Democrat and tax committee chair, introduced a plan to gradually phase out the personal income tax system in New Mexico. The proposal would begin with taxpayers earning less than $25,000 per year, or $50,000 for a married couple filing jointly. Successful implementation would require legislative approval and could ultimately cost the state over $2 billion annually.
The full event2independent outlets -
As the elected executive leader of New Mexico, Michelle Lujan Grisham is responsible for the state's financial health. The potential loss of over $2 billion annually from the income tax system forces the administration to address major budget implications and the need to re-evaluate state programs, as Hull himself acknowledged.
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Governor of New Mexico since 2019
Everything about Michelle Lujan Grisham
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The facts so far
As reported. Each one links to where it comes from.
- The proposal could ultimately cost the state more than $2 billion per year if fully implemented.abqjournal.com
- New Mexico’s revenues from personal income taxes were estimated by the Legislative Finance Committee in August to reach around $2.25 billion over the course of the current fiscal year.santafenewmexican.com
- The phaseout would start with taxpayers who make less than $25,000 per year — or $50,000 for a married couple filing jointly.abqjournal.com
Why it matters
The state's personal income tax is a major pillar of New Mexico's revenue structure. A successful implementation of Hull's plan would fundamentally alter the state's fiscal landscape, requiring a complete overhaul of how state services and programs are funded. This is a high-stakes debate, especially as the state faces rising costs for groceries and gas, and has come under scrutiny for high error rates in programs like the Supplemental Nutrition Assistance Program.
This proposal is part of a broader political contest for the governorship. The debate over tax relief versus state spending has been a key issue in the race between Gregg Hull and Deb Haaland. The challenge to the current tax structure puts pressure on the incumbent administration to defend its current fiscal policies against a major, well-funded political rival.
What we don't know yet
- What specific guardrails would be required to manage the $2 billion revenue loss?
- How would the state legislature respond to the proposal if Hull were elected?
Is this still moving?
- Reports
- 2
- Developments
- 1
- Repetition
- 50%
What would change this answer
— Other considerations
Beyond this explainer
Questions worth asking
Ideas the web ties closely to this story that the explainer doesn't mention. These are prompts for your own research: Brind hasn't answered them.
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About Summer EBT
How might the loss of state revenue affect specific programs like Summer EBT, which is tied to the Supplemental Nutrition Assistance Program?
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About Benefits Transfer EBT
If state revenue declines due to the tax phaseout, how might the funding for benefits transfer EBT programs be adjusted?
Explore Benefits Transfer EBT
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Who else could feel it
Other possible ripples from the same event.
- Democratic Party of New MexicoLikelyThe Democratic Party of New Mexico will likely mobilize political opposition against the tax phase-out
- Raúl TorrezPossibleHull's tax phase-out proposal shifts the policy debate in New Mexico's gubernatorial race
- David GallegosPossibleDavid Gallegos may face legislative pressure over tax overhaul
Reporting
- abqjournal.comOct 5
- santafenewmexican.comOct 5
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Brind's analysis is written by AI from the reporting linked above and can be wrong. This explainer is a possibility worth considering, not a forecast: steps marked as Brind's reasoning are not stated in the reporting. It is not investment advice; do your own research.