Heinrich Introduces New Legislation to Cut Taxes for New Mexico Workers

WASHINGTON - U.S. Senator Martin Heinrich (D-N.M.) announced the introduction of the Working Americans' Tax Cut Act, legislation he cosponsored to provide much-needed tax relief for New Mexico workers who are facing increased prices for groceries and everyday essentials due to President Trump's unlawful foreign tariffs. This comes as New Mexico families are already paying more for energy due to Trump's illegal war in Iran and when the Trump administration is attacking American-made clean energy - worsening the nation's affordability crisis.

According to the Economic Policy Institute's Family Budget Calculator, a single filer needs to earn $45,087 annually, a joint filer $60,718, and a family of four $105,685 to cover basic living expenses in the Albuquerque Metro Area.

The Working Americans' Tax Cut Act provides much needed tax relief for working New Mexicans - whether they are a single adult, a head of household, or a married couple filing jointly - by reducing their federal income taxes based on their income to help ensure they can afford their cost of living expenses and put food on the table. Furthermore, it funds the reduction in federal income tax liability for hardworking Americans by ensuring that the wealthiest Americans pay their fair share of taxes.

"The cost of everything is going up - from groceries to gas to electric bills. And thanks to Trump's illegal tariffs and reckless war in Iran, they're about to get even higher. Working families in New Mexico deserve a break," said Heinrich. "This legislation helps keep hard-earned money in the pockets of working people. While President Trump and Republicans in Congress give massive tax breaks to billionaires, Democrats are working to give families in New Mexico and across the country a permanent tax cut that will make life more affordable."

Specifically, the Working Americans' Tax Cut Act will give major tax relief to working families by:

• Eliminating federal income taxes for New Mexicans earning under $46,000, the national median cost of living.

• Providing a significant tax cut for individuals earning between $46,000 and $80,500, with larger benefits for heads of household and married couples.

• Providing larger exemptions for families.
  • Heads of household: up to $64,400 (140% of the single exemption).
  • Married couples filing jointly: up to $92,000 (200% of the single exemption).
  • These family exemptions would also phase out gradually at higher income levels, but many families would still receive meaningful tax cuts.
    • Heads of household: tax relief between $64,400 and $112,700 in income.
    • Married couples: tax relief between $92,000 and $161,000 in income.
    • For example, a family of four earning $95,000 would typically receive a tax cut of about $6,000.

• Phasing out the exemption gradually for higher incomes, beginning at 175% of the median cost of living for a single adult with no children.
  • Even during the phase-out, people in this income range would still pay less in taxes than they do under the current system.
  • For example, a single person earning $50,000 would typically receive a tax cut of about $2,800.

The legislation is fully paid for and avoids raising the national debt by ensuring the wealthiest pay their fair share through a tiered surtax on income above a million dollars.

The legislation is led by U.S. Senators Chris Van Hollen (D-Md.), Mark Kelly (D-Ariz.), Kirsten Gillibrand (D-N.Y.), Cory Booker (D-N.J.), and Andy Kim (D-N.J.). Alongside Heinrich, the bill is cosponsored by U.S. Senators Dick Durbin (D-Ill.), Bernie Sanders (I-Vt.), Jeff Merkley (D-Ore.), Chris Coons (D-Del.), Richard Blumenthal (D-Conn.), Brian Schatz (D-Hawaii), Tammy Baldwin (D-Wis.), Mazie Hirono (D-Hawaii), Angus King (I-Maine), Ed Markey (D-Mass.), Peter Welch (D-Vt.), Adam Schiff (D-Calif.), and Lisa Blunt Rochester (D-Del.). In the House, the legislation is led by U.S. Representative Don Beyer (D-Va.).

The Working Americans' Tax Cut Act is endorsed by the AFL-CIO, American Federation of Teachers (AFT), Americans for Tax Fairness, Community Change Action, Demos, Get Out the Vote PAC, Indivisible, Institute for Policy Studies, MoveOn, National Education Association (NEA), NETWORK Lobby for Catholic Social Justice, Oxfam US, Patriotic Millionaires, People's Action, Public Citizen, Social Security Works, Strong Economy for All Coalition, SURJ, Take on Wall Street, and United for a Fair Economy.

A summary of the bill is here.

The text of the bill is here.

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