Governor Richardson vetoes New Mexico food tax

Even though a proposed federal-level soda tax slipped off the agenda recently, momentum has gathered for state-level taxes on soda and junk foods, often framed as a way to narrow state deficits, rather than as so-called ‘sin taxes’ designed to alter behaviors or even body composition. But the New Mexico tax was much wider in scope that some of the taxes proposed in other states. It would have applied to a range of foods including taco shells, candy and soda, and perhaps most controversially, white flour tortillas, one of the most commonly consumed foods in New Mexico. In his final legislative action as state governor, Richardson vetoed the tax, saying in a statement: “In 2004, I told New Mexicans that we eliminated the food tax forever, putting hundreds of dollars into the pockets of working families. I’m not about to open the door again and resurrect a tax on food that disproportionately hurts poor and middle-income families. There is no reason to tax so basic a necessity as food in order to balance the budget.” But Senator John Arthur Smith disagreed. He told the news organization KRQE News that Richardson was “sending out the message that all is well.” “It seems to me that he is flying into the middle of the storm and saying ‘it looks clear to me’,” he said. In order to raise the money that would not be covered by a food tax, Richardson said he would tap up to $20m of stimulus funds, as well as cash reserves, and part of the cigarette tax. “I am not willing to put this burden on working families in the form of an unfair tax on food. I agree with those who call this a cruel tax. It is especially cruel during the worst financial crisis New Mexico has ever experienced,” Richardson said. New Mexico is particularly susceptible to food insecurity, with 14.5 percent of the population qualifying as food insecure, meaning they are unsure where their next meal will come from, or are chronically hungry. Twenty percent of the state’s children regularly miss meals due to inadequate income, according to government figures.

Governor Richardson vetoes New Mexico food tax

A tax that would have applied to about 40 percent of foods in New Mexico was vetoed by Governor Bill Richardson last week, who said the $68m that would have been raised by the tax could be found elsewhere.

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