Post by pavel on Feb 12, 2016 9:24:36 GMT -6
With state government revenue forecasts sliding by the week, state Rep. Luciano “Lucky” Varela offered a bill to eliminate tax breaks for 43 businesses and groups, including railroads, airlines, lottery retailers and racetrack jockeys.
Members of the House Business and Employment Committee said they agreed with Varela’s premise that many tax credits might be counterproductive. But the Republican-controlled committee still defeated his bill Thursday on a 7-4 vote, saying a more comprehensive review of tax exemptions is necessary.
Varela, D-Santa Fe, said eliminating the tax credits he targeted would save the state $112 million a year. His assessment brought immediate challenges from lobbyists for businesses. They said at least some of the tax breaks Varela wanted to eliminate have created jobs and helped the economy.
Lobbyists for Southwest Airlines and Union Pacific Railroad challenged Varela. Southwest Airlines added 231 jobs in Albuquerque last year, bringing its total to more than 700, the company’s lobbyist said. A lobbyist for Union Pacific said the railroad sparked a warehousing and trade boom in the Southern New Mexico border town of Santa Teresa. Tax credits apply to both jet fuel and locomotive engine fuel.
Read more: www.santafenewmexican.com/news/legislature/gop-lawmakers-block-bid-to-ax-business-tax-breaks/article_366aa9ed-fb66-53a4-bb5a-92a3302b3f38.html
Members of the House Business and Employment Committee said they agreed with Varela’s premise that many tax credits might be counterproductive. But the Republican-controlled committee still defeated his bill Thursday on a 7-4 vote, saying a more comprehensive review of tax exemptions is necessary.
Varela, D-Santa Fe, said eliminating the tax credits he targeted would save the state $112 million a year. His assessment brought immediate challenges from lobbyists for businesses. They said at least some of the tax breaks Varela wanted to eliminate have created jobs and helped the economy.
Lobbyists for Southwest Airlines and Union Pacific Railroad challenged Varela. Southwest Airlines added 231 jobs in Albuquerque last year, bringing its total to more than 700, the company’s lobbyist said. A lobbyist for Union Pacific said the railroad sparked a warehousing and trade boom in the Southern New Mexico border town of Santa Teresa. Tax credits apply to both jet fuel and locomotive engine fuel.
Read more: www.santafenewmexican.com/news/legislature/gop-lawmakers-block-bid-to-ax-business-tax-breaks/article_366aa9ed-fb66-53a4-bb5a-92a3302b3f38.html