New Mexico Economic Development and Revenue Strategy
The State Should Pursue Tax Policy Changes to Improve Equity, Reduce
Volatility, and Better Position New Mexico to Meet Future Needs
The State should consider a series of tax reforms consistent with the LFC's tax principles,
defined as follows:
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Adequacy – the tax or tax system generates enough revenue to pay for public services
without continuous changes
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Efficiency – the tax or tax system minimizes economic distortion and avoids excessive
reliance on any single tax
Equity - the tax or tax system fairly distributes the tax burden among all taxpayers
Simplicity – taxes are simple to understand and collect
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Accountability/Transparency – tax collection/administration is easy to monitor and
evaluate and subject to periodic review
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