Commentary: We are on a limited income and are mad as hell about the double taxation on our Social Security benefits. The most grievous betrayal of New Mexicans occurred in 1990 when the New Mexico state legislature passed and the then Governor Garrey Carruthers signed into law obnoxious legislation basically double-taxing all New Mexico residents 65 or older who receive Social Security. This tax is a form of double taxation, since New Mexicans pay income tax on the money that is deducted from their paychecks for Social Security, and then they are taxed again on the benefits they receive.
Social Security is arguably one of the most important Federal social programs in this state. More than 225,000 residents each month receive a Social Security check. A quarter of these older New Mexicans rely on Social Security as their only source of income. New Mexico has 12.2 percent of its seniors living on income that drops below the federal poverty line of $12,490 a year for a household of one just below the average Social Security benefit of $13,900. Yet in 1990, New Mexico and the Governor double-taxed retirees to feed the state coffers. Many reside in nursing homes.
Only 13 states allow this hideous double taxation of social security. New Mexico has the worst tax, costing the average Social Security recipient hundreds of dollars per year. The state legislature and Governor Michelle Lujan Grisham need to work together in the special legislative session to REPEAL NOW this grossly unfair tax. It is the least our leaders can do for our seniors who are bearing the brunt of the Covid-19 pandemic and its economic devastation. Thanks for reading.