A move to do away with the federal income tax and replace it with a national 30% sales tax has been introduced in Congress. Georgia Representative Buddy Carter says what is known as the Fair Tax Act would make it possible for Americans to “keep 100% of their hand-earned paychecks,” by not having to pay for Social Security taxes. The legislation would also eliminate all corporate income taxes, while additionally repealing the current federal tax code in favor of a single national consumption tax. On his website, Carter says that the proposed Fair Tax Act is “not riddled with shelters and loopholes, meaning wealthy taxpayers cannot minimize what they pay in taxes, regardless of how many lawyers and accountants they hire to advise them.” In introducing his bill, Carter remarked: “Instead of adding 87,000 new agents to weaponize the Internal Revenue Service against small business owners and middle America, this bill will eliminate the need for the department entirely.” The proposal has met with decidedly polar responses. Florida Representative Kat Cammack, who is a co-sponsor of the legislation, has characterized the Fair Tax Act as a “simplified and fair code that works for all, not just some.” But House Minority Leader Hakeem Jeffries of New York, in a news conference, charged that the legislation will “impose a tax hike that is dramatic on 90% of the American people, working families, middle class folks, seniors and those who aspire to be a part of the middle class.” While prospects for the legislation may be promising in the House, the odds of passage in the Senate are doubtful. Appearing with Jeffries, Senate Majority Leader Charles Schumer said he would do everything possible to defeat the legislation. Although versions of the Fair Tax Act have been aired before, notes The Hill, “frustration over the $80 billion funding boost for the IRS passed by Democrats last year has Republicans wanting to make bold statements about changing the tax code—including scrapping it altogether.” An analysis of the legislation produced by the Brookings Institute remarked that there is “no historical precedent for a country to enact a high-rate, enforceable, national sales tax. That does not mean it is impossible, but extreme caution would be appropriate.” By Garry Boulard
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Legislation has been introduced in the New Mexico State Legislature that will create funding for climate change programs across the state. House Bill 42, sponsored by Representative Elizabeth Thomson, calls for the creation of a Public Health and Climate Resiliency Fund to support climate change efforts. As envisioned, the fund would operate under the auspices of the New Mexico State Treasurer’s Office and would pull some $5 million out of the state’s General Fund in the next fiscal year. That $5 million would then be disbursed between fiscal years 2024 and 2028 to local and tribal governments. According to an analysis of the legislation put together by the Legislative Finance Committee it is noted that although the bill “does not specify future appropriations, establishing a new grant program could create an expectation the program will continue in future fiscal years, therefore this cost could become recurring.” By Garry Boulard Nine months after one of the largest and most destructive wildfires in New Mexico history, legislation has been introduced creating a fund for communities who may endure similar calamities in the future. By any measure, the Calf Canyon/Hermits Peak Fire, igniting during the first week of April 2022, was a record-breaker: burning across an estimated nearly 341,500 acres before it was finally contained in late August. In between those two months, the Hermits Peak fire within the Santa Fe National Forest connected with a second fire in the region near the Calf Canyon Road. Before firefighters were finally able to contain the combined wildfires, more than 900 structures were destroyed, including several hundred residences. In her recent State of the State address, Governor Michelle Lujan Grisham tasked state lawmakers with approving up to $100 million in funding to help rebuilding efforts. Now Senator Elizabeth Stefanics has introduced legislation that will put in place a $1.1 million fund for the state’s Department of Health to tap into when other communities are impacted by natural disasters. Senate Bill 5 will also appropriate an additional $5 million for the creation of a public health and climate resiliency fund to be disbursed to local and tribal governments during fiscal years 2024 and 2028 for climate change adaptability efforts. According to an analysis compiled by the Legislative Education Study Committee, grants of up to $250,000 would be available for all state political subdivisions, including public school districts, to “prepare for and respond to public health emergencies related to extreme weather and other climate impacts.” Stefanics’ legislation is now under review before the Senate Health and Public Affairs Committee. By Garry Boulard A deadline of January 31 is looming for programs at the state level that may be eligible for federal grants to improve the energy efficiency of buildings and reduce greenhouse gas emissions. The grants are available as a result of the big $1.2 trillion Infrastructure Investment and Jobs Act approved by Congress late last year. That legislation provides up to $225 million in grants, to be accessed during the next four years. The funding is coming through the Energy Department’s Resilient and Efficient Codes Implementation program. According to the guidelines of the program, states will be eligible for grant funding that can then be spent on updating energy codes, conducting studies and training programs, among other endeavors. A second federal energy initiative is seeing a much larger $1 billion approved in the Inflation Reduction Act, which received Congressional approval last August. That program is for state and local governments adopting the most recent energy codes, otherwise known as the 2021 International Energy Conservation Codes. Both federal grant programs envision state governments partnering not only with local government, but also individual home builders, and professional industry associations. A press release issued by the National Association of Home Builders cautions that usage of the Inflation Reduction Act grants is somewhat restrictive, while lauding what’s available in the Resilient and Efficient Codes Implementation program. “Updating to any newer energy code will result in higher construction costs and higher home prices. And most of the additional requirements do not pay for themselves over time,” says the NAHB, before adding: “But if a state still wants to take advantage of the grant programs, one is far better than the other.” By Garry Boulard A one-time school building in Grand Junction that was later converted into a children’s day care and education center is being listed for sale for $750,000. Located at 3170 D ½ Road on the east side of the city in a mostly residential section, the one-story structure was built in 1955. For years it was the home to the Pear Park School, providing instruction to several generations of Grand Junction students. After that school closed in 1969, the building was occupied by a series of day schools, including Jo’s Child Haven and the Step by Step Learning Center. The most recent tenant was the Futures Learning Center, which ceased operations at the site several months ago. Sitting on a nearly 2-acre site, the structure is classified as a Class B building, and comprises nearly 5,800 square feet. Included in the building is office and classroom space, as well as a utility-sized kitchen. The property is being listed with the Pueblo-based realtor Cordova Investments. By Garry Boulard Plans are now underway for the construction of a new fire station in Albuquerque that will go up on a 6-acre site on the growing southwest side of the city. Long discussed, the station will be built near the intersection of Blake Road SW and 98th Street SW in an area that within the last decade or so has seen significant new residential and some retail construction. The general area also takes in the Rudolfo Anaya Elementary School at 2800 Vermejo Park SW, which was opened in 2009. While funding for what is designated as Station Number 23 has been secured, city officials have said that they hope to receive additional support from the State of New Mexico to the tune of $10 million to complete a larger public safety complex at the site. The Fire Rescue department’s other stations are strategically located throughout the city, with a stated goal of responding to calls anywhere in 4 minutes or less. Planning for the construction of the new station is currently underway, with the actual work on the facility expected to begin by late summer. By Garry Boulard In a move to expand the parameters of where new housing can be built, Colorado Governor Jared Polis is challenging members of the state legislature to take a different approach to existing land use policies. In his State of the State address marking the beginning of his second term in office, Polis noted that the last time the state implemented any substantive land use regulation changes was in 1974. “We were a different state then,” he said. “Over the last half century, housing prices have increased roughly four times the rate of income.” That rate, said the Governor, means “a house today costs over four times as much compared to today’s income levels than 60 years ago, putting the dream of homeownership out of range for too many Coloradoans.” In addressing land use issues this year, Polis wants to update the state’s official land use code, permitting for more flexible zoning, while also speeding up the permitting process. “It’s time to legalize more housing choices for every Coloradoan, and give homeowners more freedom, revitalize our cities and towns, while protecting the character of our state,” asserted Polis. Noting that last year Colorado voters approved Proposition 123, which dedicates up to $300 million annually to building new housing, Polis remarked, “We can’t just buy our way out of this, we have to break down government barriers, expand private property rights, and reduce regulations to actually construct more housing options at a lower cost so all Coloradoans can thrive.” Polis also called for a reduction in the state’s property tax, and proposed up to $120 million in annual clean energy tax credits. “With this tax relief and incentives, we can improve our air quality, accelerate innovation, and make more rapid progress towards out goals,” said Polis, “while saving people money at the pump and on their utility bills, and increasing access to clean, low-cost transportation options.” By Garry Boulard Construction could begin a year from now on a new casino in metro Tucson. The facility will belong to the Pascua Yaqui Tribe and, according to plans, will go up on a 14-acre site near the intersection of Interstate 10 and West Grant Road. The project, which has been long in the talking and thinking stage, recently received an important green light with the U.S. Senate approval of a land act initially sponsored in the House by Arizona Representative Raul Grijalva. The Old Pascua Community Land Acquisition Act makes it possible to put the site in question into a trust for the benefit of the Pascua Yanqui, while also allowing for the presence of gaming on the property. The Senate votes came after the State of Arizona entered into an amended gaming contract with 22 regional tribes which allowed for construction of a casino on a site that was once the home to a Century Park 16 theater. That theater closed in 2011, with the larger site purchased by the Pascua Yanqui Tribe several years later. The tribe already owns and operates the Casino Del Sol and Casino of the Sun, both in Tucson. By Garry Boulard New Mexico Governor Launches New Term with Tax Cuts and Infrastructure Construction Proposals1/23/2023 New Mexico Governor Michelle Lujan Grisham wants to give back to the residents of the state a portion of the taxes they’re required to pay. In her a State of the State address, marking the beginning of her second term as Governor, Lujan Grisham has asked members of the state legislature to approve one-time rebates of $750 for each individual taxpayer. The figure increases to $1,500 for couples filing jointly. The tax rebate initiative is part of an overall package of $1 billion in economic relief being proposed by the Governor, who noted that such rebates will “help more New Mexicans afford the things they need right now.” Other parts of that package, said Lujan Grisham, include “cutting our gross receipts tax rate again to help consumers save money; implementing common sense anti-pyramiding measures to make goods and services more affordable; and delivering personal income tax cuts for middle class New Mexicans by making our system more progressive.” The Governor is also tackling a problem that is challenging the chief executives of all the other 49 states: the current high cost of housing. “I am requesting over $100 million for housing programs,” she said, noting that such funding will go to, among other things, down payment assistance programs as well as investments in the state’s Mortgage Finance Authority. Such funding can then be matched by money coming out of Washington. For the state’s builders, Lujan Grisham’s infrastructure proposals can only be good news: she is proposing up to $128 million in funding for water infrastructure improvement projects across the state, as well as a larger $146 million for statewide broadband expansion. The Governor also said she wants to fund to the tune of $200 million a Rural Health Care Delivery Fund; and see the capital outlay passage of $10 million for a “full-spectrum reproductive health clinic in southern New Mexico.” An additional $100 million is slated to go to the communities who were impacted by the Hermit’s Peak/Calf Canyon fire earlier last spring, which is regarded as one of the largest and most destructive wildfires in New Mexico history, having devastated some 340,000 acres between April and June. By Garry Boulard New statistics released by the Bureau of Labor Statistics show union membership nationally is now at 10.1%, down slightly from the 10.3% recorded in 2021. The decline of unionized labor has been a long time coming: in 1954 nearly 35% of the country’s labor force was unionized. That number dropped to 20% by 1983 and has been nearly cut in half since then. The BLS report, Union Members—2022, additionally notes that a higher 33.1% of workers in public sector employment are unionized; with the largest rate of unionization, at 34.6%, seen in protective service occupations, followed closely by the 33.7% who are organized in the education and library professions. More men than women are labor union members, by a 10.5% to 9.6% margin. But, according to the BLS, this gap has been steadily narrowing in recent decades. In 1983, 24.7% of men and 14.6% of women were unionized. In terms of earnings, the BLS report shows that unionized employees on average earned $1, 216 per week last year, compared with the $1,029 average per week wage earned by non-union workers. Unionized workers in the construction industry are now at 11.7%, a decline from the 12.6% recorded in 2021. In 1973, roughly 39% of construction industry workers belonged to a union. The latest figures, not surprisingly, vary from state to state. Exactly 6.2% of workers in Arizona were unionized last year; Colorado came in at 7.5%; while New Mexico recorded a rate of 10.6%. The state with the highest union membership in 2022 was Hawaii at 23.4%; the lowest: South Carolina at 2.0%. By Garry Boulard |
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