The middle class wins with the Senate’s social security tax compromise
The middle class wins with the Senate’s social security tax compromise

The middle class wins with the Senate’s social security tax compromise

The compromise reached by Gov. Michelle Lujan Grisham and Senate Democrats to remove the social security income tax for all lower and middle-income seniors – with incomes up to $ 100,000 for individuals and $ 150,000 for couples – represents a reasonable compromise among supporters and opponents of a full repeal.

The state tax on social security has been in force since 1990, when the Legislative Assembly passed a complex tax law that buried the provision on a single line on the penultimate page. From at least as early as 1997, legislators from both parties have introduced legislation to abolish the tax on social security.

In 2019, Think New Mexico advocated for a complete repeal in our report, “Solving the Hidden Crisis: Achieving Retirement Security for All New Mexicans,” prompted by a 2018 UNM survey that found that two out of every three private sector working in new mexico has no money saved for retirement.

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