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		<title>Where The Tax Burden Falls In New Mexico</title>
		<link>http://www.sfreeper.com/2010/02/05/where-the-tax-burden-falls-in-new-mexico/</link>
		<comments>http://www.sfreeper.com/2010/02/05/where-the-tax-burden-falls-in-new-mexico/#comments</comments>
		<pubDate>Fri, 05 Feb 2010 22:26:34 +0000</pubDate>
		<dc:creator>Corey Pein</dc:creator>
				<category><![CDATA[News]]></category>
		<category><![CDATA[economy]]></category>
		<category><![CDATA[GRT]]></category>
		<category><![CDATA[income taxes]]></category>
		<category><![CDATA[inequality]]></category>
		<category><![CDATA[internal revenue service]]></category>
		<category><![CDATA[IRS]]></category>
		<category><![CDATA[jerry ortiz y pino]]></category>
		<category><![CDATA[progressive taxation]]></category>
		<category><![CDATA[recession]]></category>
		<category><![CDATA[regressive taxation]]></category>
		<category><![CDATA[sales taxes]]></category>
		<category><![CDATA[sen jerry ortiz y pino]]></category>
		<category><![CDATA[taxes]]></category>

		<guid isPermaLink="false">http://www.sfreeper.com/?p=8110</guid>
		<description><![CDATA[SFR&#8217;s current cover story on economic inequality has been bouncing around the econoblogosphere. It&#8217;s also getting some attention in the Roundhouse. Apparently, New Mexico Lt. Gov. candidate and state Sen. Jerry Ortiz y Pino just plugged the story in a budget hearing. That&#8217;s according to the New Mexico Independent&#8217;s liveblog.
Here&#8217;s a visual appendix to the [...]]]></description>
			<content:encoded><![CDATA[<p>SFR&#8217;s current cover story on economic inequality has been <a href="http://www.marginalrevolution.com/marginalrevolution/2010/02/profile-of-sam-bowles.html">bouncing</a> <a href="http://crookedtimber.org/2010/02/03/sam-bowles-and-inequality/">around</a> <a href="http://baselinescenario.com/2010/02/04/taxes/">the</a> <a href="http://economistsview.typepad.com/economistsview/2010/02/inequality-and-guard-labor.html">econoblogosphere</a>. It&#8217;s also getting some attention in the Roundhouse. Apparently, New Mexico Lt. Gov. candidate and state Sen. Jerry Ortiz y Pino just plugged the story in a budget hearing. That&#8217;s according to the New Mexico Independent&#8217;s <a href="http://newmexicoindependent.com/46512/now-live-blog-of-the-2010-legislative-session-day-17">liveblog</a>.</p>
<p>Here&#8217;s a <strong>visual appendix</strong> to the story that lawmakers might find useful. SFR made the following color-coded charts using Internal Revenue Service data for the 2007 tax year. The first shows that New Mexico is a solidly working-class state, with only a sliver of the population claiming even moderate wealth.</p>
<p><a href="http://www.sfreeper.com/wp-content/uploads/2010/02/taxchart1.jpg"><img class="aligncenter size-full wp-image-8107" title="taxchart1" src="http://www.sfreeper.com/wp-content/uploads/2010/02/taxchart1.jpg" alt="" width="423" height="255" /></a></p>
<p><strong>Approximately 18,500 New Mexicans reported incomes over $200,000</strong>, versus 719,200 who reported making less than $50,000.</p>
<p><span id="more-8110"></span>The next chart shows how much money each of those tax brackets holds. New Mexicans at the bottom of the income pyramid had incomes totaling <strong>$12.4 billion</strong>. Meanwhile, the 85,000 New Mexicans making more than $100,000 a year—those near the tip of the pyramid—claimed <strong>$18 billion in income</strong>.</p>
<p><a href="http://www.sfreeper.com/wp-content/uploads/2010/02/taxchart2.jpg"><img class="aligncenter size-full wp-image-8107" title="taxchart2" src="http://www.sfreeper.com/wp-content/uploads/2010/02/taxchart2.jpg" alt="" width="423" height="255" /></a></p>
<p>The final charts show <strong>where the state and local tax burden fell</strong> across those brackets, as figured by reported deductions. Not surprisingly, sales taxes mainly hit the working class (dark blue) and upper-middle class (red and green). Income taxes hit mainly the well-to-do (purple) and wealthiest (light blue).</p>
<p><a href="http://www.sfreeper.com/wp-content/uploads/2010/02/taxchart4.jpg"><img class="aligncenter size-full wp-image-8107" title="taxchart4" src="http://www.sfreeper.com/wp-content/uploads/2010/02/taxchart4.jpg" alt="" width="423" height="255" /></a></p>
<p>Above, the light blue represents $361 million in income taxes. The dark blue represents $71 million.</p>
<p><a href="http://www.sfreeper.com/wp-content/uploads/2010/02/taxchart5.jpg"><img class="aligncenter size-full wp-image-8107" title="taxchart5" src="http://www.sfreeper.com/wp-content/uploads/2010/02/taxchart5.jpg" alt="" width="423" height="255" /></a></p>
<p>Finally, here, the dark blue represents approximately $25 million in sales taxes. The light blue represents the $5.1 million paid by the wealthiest New Mexicans.</p>
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