Richardson's task force talks taxes

SANTA FE (KRQE) - A budget task force formed by Gov. Bill Richardson discussed more than 30 possible tax increases to fix the looming budget deficit during their first meeting in Santa Fe Monday.

The governor said that even though the special session helped plug some of the state's $650 million budget hole, continued declining revenues mean taxes must be an option as lawmakers gear up for what is expected a brutal January session.

The task force is made up of professionals from several New Mexico industries, ranging from oil and gas to insurance.

Tax increase proposals included adding as much as $1 to the price of a pack cigarettes and higher taxes on liquor and beer.

The group also talked about increasing personal and corporate income tax rates—even taxes on insurance premiums.

Monday’s meeting at Santa Fe Community College was simply to discuss possible options for lawmakers when they meet in January.

Budget Task Force Chairman Rick Homans said people are struggling to make ends meet as is, and any talk of taxes needs to be handled delicately.

"Anytime one raises taxes, it is not a pleasant experience to do that,” Homans said. “So the point of this is to see which taxes might hurt the least and which ones would be the best in overall state tax policy."

Gov. Richardson wants the tax hike recommendations on his desk by December 21st.

The budget task force will meet four more times before that date.

The group is looking for public input on tax increases. You can comment by going to the task force's Web site.