Albuquerque Journal (Albuquerque, NM)

Eliminating Food Tax Puts Thorny Issues on Table.(Final)

Byline: LARRY CALLOWAY For the Journal

The last time New Mexico got serious about exempting groceries and medical services from the gross receipts tax, a very costly proposition for the Legislature, an economist came through with an alternative.

Three decades ago, the late Gerald Boyle of the University of New Mexico brought some calculations to the Legislature's finance leader, Sen. Aubrey Dunn of Alamogordo. Poor families paid a larger percentage of their income for gross receipts taxes than did wealthier families. The tax was regressive.

Boyle had done some work on an idea that would correct the problem. The result of Boyle's tables was the low-income tax rebate, as it was called. …

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