A new report published by WalletHub revealed the states with the best and worst returns on investments of taxpayer money, with New Mexico ranking low on the list.
WalletHub wrote, “Different states have dramatically different tax burdens. This begs the question of whether people in high-tax states receive superior government services. Likewise, are low-tax states more efficient or do they receive low-quality services? In short, where do taxpayers get the most and least bang for their buck?”
According to the analysis, taxpayers in New Hampshire, Florida, Alaska, South Dakota, and Texas took the top five spots, respectively.
California ranked 50th as the lowest state, with Hawaii coming in 49th and New Mexico ranking slightly better at 48.
While New Mexico ranked 49th for overall government services, residents paid the 24th-best tax rate in the nation.
Following the 2023 Legislative Session, New Mexico might be ranked below Hawaii or California due to a new Democrat-led tax package that raises alcohol taxes by 20 percent and cigar taxes to a full 25% of the price, among other measures that will increase taxes to the tune of around $100 million annually.
Commenting on the legislative session, the Rio Grande Foundation wrote, “Overall, the session, even with a $3.6 billion surplus, offered no fundamental approach to economic development or anything else.”
Other numbers from WalletHub show New Mexico ranks 49th in education ahead of only Alaska, 34th in health, 48th in safety, 49th economically, and 30th regarding infrastructure and pollution.