Many New Mexicans are concerned about the tax cuts enacted in 2001 and 2003—sometimes referred to as the "Bush tax cuts"—that are scheduled to expire at the end of this year. As the expiration date approaches, Congress is considering what to do.

Senator Bingaman believes that the most fiscally responsible and economically beneficial course is extend tax cuts for individuals who earn up to $200,000 and couples earning up to $250,000, and to allow the tax cuts for the wealthiest 2 percent of Americans to revert back to pre-2001 levels.

Ninety-nine percent of New Mexicans earn less than $250,000.  But it's important to note that even New Mexicans who earn more than $250,000 will benefit from extending middle-class tax cuts. That's because (regardless of total income) all income under $200,000 (individuals) or $250,000 (families) would be subject to the extension of current rates.

An extension for the wealthiest Americans would significantly reduce revenues in the years to come, requiring the country to borrow $700 billion to cover the cost. A report by the nonpartisan Congressional Budget Office ranked extending the 2001 and 2003 tax cuts for the wealthiest Americans last among eleven options to stimulate growth and job creation. Given this evidence, Senator Bingaman believes that adding to the deficit to pay for tax cuts for the wealthiest Americans does not make good fiscal sense.