New Study Finds New Mexico Government among Worst in North America at Promoting Economic Growth

(Albuquerque, New Mexico) In a just-released study by the U.S.-based National Center for Policy Analysis www.ncpa.org and Canada-based Fraser Institute http://www.fraserinstitute.ca/, New Mexico government is taken to task for burdening its citizens with some of the highest taxes and regulatory burdens of any state or provincial government in all of North America.

With an overall ranking of 50th out of 50 states and 10 Canadian provinces, only West Virginia’s abysmal scores prevents New Mexico from being the least economically-free state in the nation. The Canadian provinces of Alberta and Ontario also outscore New Mexico despite more burdensome taxes and regulations imposed by that nation’s government.

Categories, along with information on New Mexico’s overall standing are listed below:

• “Size of government:” New Mexico was ranked 56th in this measure as its state and
local tax burden of 10.1% is well above average;
• Takings and taxation: New Mexico was 48th (This score has been in a free fall since
the state scored 13th in the previous version of this study three years earlier);
• Labor market freedom: New Mexico was ranked 41st;

Commenting on New Mexico’s poor showing, Paul Gessing of New Mexico’s Rio Grande Foundation, noted, “These poor results are no surprise, as New Mexico has relied on government largesse for far too long.” New Mexico has more state and local employees per capita than all but two states and federal taxpayers spend $2 in New Mexico for every $1 New Mexicans send to Washington.

Gessing went on to argue that, “New Mexico is a clear example of the reality that government growth hinders economic growth. Low taxes, strong property rights, and limited labor market restrictions, on the other hand, allow individuals and businesses to create wealth and raise living standards.” New Mexico has long been considered a “poor” state, and according to federal data, New Mexicans have the fifth-lowest personal incomes in the nation.

The full text of “Economic Freedom in North America 2006” can be found at the National Center for Policy Analysis website: http://www.ncpa.org/pub/special/pdf/EFNA2006.pdf. Additional data on New Mexico’s economic woes can be found on the Rio Grande Foundation’s website: www.riograndefoundation.org.