Proposal would eliminate income taxes for some earners and reduce rates for others under new federal legislation

Organ Mountain News report

LAS CRUCES - U.S. Sen. Martin Heinrich is backing new federal legislation that would reduce or eliminate income taxes for many New Mexico workers.

Who would qualify for tax relief

Heinrich announced Friday he is cosponsoring the Working Americans’ Tax Cut Act, a proposal that would lower federal income taxes based on income levels and household status.

Under the bill, individuals earning less than $46,000 annually would pay no federal income taxes. The legislation would also reduce taxes for individuals earning between $46,000 and $80,500, with larger benefits for heads of household and married couples filing jointly.

Expanded benefits for families

The proposal includes expanded exemptions for families. Heads of household could qualify for exemptions up to $64,400, while married couples filing jointly could qualify for exemptions up to $92,000. Those benefits would gradually phase out at higher income levels.

How the proposal compares to cost of living

According to the Economic Policy Institute, a single filer in the Albuquerque area needs to earn about $45,087 annually to cover basic living expenses. A family of four would need about $105,685.

How the bill would be funded

The bill would be funded in part through a surtax on income above $1 million, according to the proposal.

What happens next

Heinrich joined a group of Democratic and independent senators in backing the legislation. A companion bill has also been introduced in the U.S. House.