Martinez to VETO 56% Tax Increase

Bloomberg - New Mexico Gov. Susana Martinez is sticking with her plan to veto a bill raising employer taxes and isn't reconsidering despite business groups urging her to sign the legislation to shore up the unemployment compensation program, a spokesman for the governor said Thursday. However, the question of how to fix the ailing unemployment program could be back before the Legislature later this year in a special session if the state's economy doesn't improve, according to Martinez spokesman Scott Darnell. The Legislature passed a bill that will raise taxes on businesses by $128 million next year -- a 56 percent increase -- and reduce benefits to prevent the unemployment trust fund from running out of money. If nothing is done, the fund is projected to become insolvent in March 2012 and the state might need to borrow from the federal government to pay jobless benefits. "This bill just isn't the prudent response right now," said Darnell. Read full story here: News New Mexico

Martinez to VETO 56% Tax Increase