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F I S C A L I M P A C T R E P O R T

SPONSOR Carraro

ORIGINAL DATE

LAST UPDATED

01/29/08

HB

SHORT TITLE Reform U.S. Tax Code

SM 8

ANALYST Escudero

APPROPRIATION (dollars in thousands)

Appropriation

Recurring

or Non-Rec

Fund

Affected

FY08

FY09

NFI

(Parenthesis ( ) Indicate Expenditure Decreases)

Duplicates HM 33

SOURCES OF INFORMATION

LFC Files

SUMMARY

Synopsis of Bill

Senate Memorial 8 is requesting that The New Mexico Congressional Delegation work to reform

the United States Tax Code.

•

The United States tax code has become increasingly complex and burdensome for

American families and businesses.

•

Congress has enacted fifteen thousand changes to the tax code since 1986, with each

change resulting in more complexity and burdensome requirements on American

taxpayers.

•

Increased complexity and lack of transparency create substantial uncertainty for

taxpayers in figuring out their tax bills each year.

•

The tax base has become increasingly diluted as tax deductions for particular economic

activities receive special preferences.

•

American families and businesses spend more than three and one-half billion hours filling

out their tax forms, costing one hundred fifty billion dollars ($150,000,000,000), just to

ensure that their taxes are paid correctly.

•

High marginal tax rates on income and investment penalize work, savings and

investment; and

•

Multiple layers of double taxation on savings and investment coupled with increasing

compliance costs are reducing economic growth, job creation and household savings; and

Senate Memorial 8 – Page

2

•

Tax law changes have not kept pace with a growing and dynamic international economy,

thus leaving American workers and businesses at a significant competitive disadvantage

with foreign competitors.

•

For America to continue to be a leader in the global economy, congress needs to enact tax

reform that greatly reduces compliance costs, eliminates double taxation of savings and

investment and taxes income one time at one rate;

•

Now, Therefore, Be It Resolved By The Senate Of The State Of New Mexico that the

members of the New Mexico congressional delegation be requested to support tax reform

that moves to a system that greatly reduces compliance costs, eliminates double taxation

of savings and investment and taxes income one time at one rate; and

•

Be It Further Resolved, that copies of this memorial be transmitted to each member of the

New Mexico congressional delegation.

FISCAL IMPLICATIONS

There are no appropriations attached to this legislation.

SIGNIFICANT ISSUES

•

Multiple layers of double taxation on savings and investment coupled with increasing

compliance costs are reducing economic growth, job creation and household savings; and

•

Tax law changes have not kept pace with a growing and dynamic international economy,

thus leaving American workers and businesses at a significant competitive disadvantage

with foreign competitors.

•

For America to continue to be a leader in the global economy, congress needs to enact tax

reform that greatly reduces compliance costs, eliminates double taxation of savings and

investment and taxes income one time at one rate;

PME/bb