A bill that would raise payroll taxes for both employees and employers and provide for up to three months of paid leave for all New Mexico employees has passed through committee and will be heard on the Senate floor sometime this week. After a 3-1/2 hour heated debate in the Senate Finance Committee, SB-11 passed on a 6-5 vote. The committee Chair Sen. George Munoz, D Gallup, joined Republicans in voting against the bill.
Opponents have pointed to the non-partisan Fiscal Impact Report attached to the bill as a reason not to pass it. The study says the bill would require adding 200 employees to Workforce Solutions to implement the plan. It also points out that it could become insolvent within the first two years.
The New Mexico Chamber and the New Mexico Chamber Executives Assn. are roundly opposed to the bill, saying it was a tax on employees and could put small employers in a tough situation of trying to manage operations for up to three months in a job market that could make temporary hires tough to make.
The bill would provide for withholding tax of $5 for every $1,000 they earn and employers would pay $4. Employers with less than five employees wouldn’t be required to contribute but employees would still be taxed. |