New Mexico is Already Halfway There
GRT Infrastructure Exists
New Mexico already uses Gross Receipts Tax at ~5%.
No need to build new tax collection systems. Just expand the rate and scope. The infrastructure is proven and operational.
Universal Childcare Already Implemented
Gov. Lujan Grisham made childcare free for most families.
AIP doesn't create this from scratch — it integrates existing childcare into the education system and extends coverage.
Fiscal Strength
$3.5 billion reserves. $650 million annual surplus.
New Mexico has the fiscal cushion to lead. 32% of budget in reserves — strongest position in the Alliance.
What New Mexico Adds
Healthcare
Paid by GRT. No out-of-pocket costs.
No premiums. No deductibles. No copays. State pays providers directly. Repaid through Stability Account at maturity (capped at $400K).
Education Expansion
6 AM - 7 PM. Year-round. Lifetime access.
Childcare already covered. AIP extends hours, adds year-round calendar, includes meals, and provides lifetime access through higher education and retraining.
Water Security
Albuquerque branch from the main pipeline.
Rio Grande faces chronic shortages. A branch from the Phoenix corridor delivers Columbia River water to Albuquerque metro.
Eliminate Income Tax
Current income tax ranges 1.7% - 5.9%. AIP eliminates it.
GRT expands from ~5% to ~11%. Income tax eliminated. No filing required.
Family Impact
Median New Mexico family of 4, two children (childcare already covered), household income ~$58,000
| Category | Current Cost | Under AIP |
|---|---|---|
| Health insurance premiums | $12,000/year | Paid by GRT |
| Healthcare out-of-pocket | $4,000/year | Paid by GRT |
| Childcare (2 kids) | Already covered | Still covered |
| State income tax (~3% effective) | $1,740/year | Eliminated |
| Before/after school care | $2,500/year | Included |
| Summer programs | $2,000/year | Included |
| Meals (school) | $1,800/year | Included |
| New GRT cost (vs current GRT) | -$3,500/year |
Employer Impact
Per employee
GRT Calculation
| Current state GRT | ~5% |
| Current state income tax (avg) | ~3% |
| Healthcare funding needed | +2.5% |
| Education expansion | +0.5% |
| Water/infrastructure | +0.5% |
| Total GRT Rate | ~11% |
Lowest rate in the Alliance — because infrastructure already exists.
Political Window
Governor Lujan Grisham — Term Limited January 2027
Governor Lujan Grisham implemented universal childcare. With 11 months left, AIP offers a legacy-defining capstone.
- Already proved GRT works
- Already proved universal childcare works
- Term-limited — can take bold action
- AIP = "I built the model other states will follow"
New Mexico Stability Account
| Initial deposit (at birth) | $25,000 |
| Investment | Domestic dividend stocks (DRIP) |
| Value at age 65 (6.88% avg) | ~$1,890,000 |
| Repay: 2x principal | -$50,000 |
| Repay: Healthcare (capped) | -$400,000 |
| Repay: Education (typical) | -$200,000 |
| Keep at retirement | ~$1,240,000 |
Why New Mexico as Policy Anchor
📋 GRT Proven
- Already collecting GRT
- Infrastructure exists
- Just expand the rate
👶 Childcare Done
- Universal childcare works
- Political battle already won
- Proof of concept exists
💰 Fiscal Cushion
- $3.5B reserves
- $650M annual surplus
- Can absorb transition costs
🏛️ Political Will
- Progressive leadership
- Track record of bold policy
- Term-limited governor ready