New Mexico Economic Development and Revenue Strategy
Unprecedented Increases in Collections Needed to Cover Potential
Revenue Gap Absent Reform
Estimated Collections Needed to Cover Revenue Gap
(millions)
Total (FY2023-
FY2037
FY2037)
Potential Revenue Gap
($3,054)
($36,333)
Scenario 1: Closing the Gap with GRT Revenue Only
GRT Revenue Using Historical Growth Rate
$5,192
$59,363
GRT Needed for Potential Revenue Gap
$8,246
$95,696
Difference to Historical GRT Growth Rate Estimate
59%
61%
Scenario 2: Closing the Gap with PIT Revenue Only
Net PIT Revenue Using Historical Growth Rate
$2,554
$35,031
PIT Needed for Potential Revenue Gap
$5,608
$71,364
Difference to Historical PIT Growth Rate Estimate
120%
104%
Scenario 3: Closing the Gap with Both GRT and PIT Revenue
Combined GRT and PIT Revenue Using Historical Growth Rate
GRT and PIT Needed for Potential Revenue Gap
$7,746
$94,394
$10,800
$130,727
Difference to Combined Historical Growth Rate Estimate
39%
39%
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