Two Fun Rankings

Fourth is New Mexico’s rank among the states for percentage of forecast revenue promised for annual pension benefits starting five years after New Mexico’s pension assets run out in 2026, says the article in the October 16 issue of The Economist (economist.com/usstatepensons). At about 40% of revenues obligated, New Mexico is behind only Rhode Island, Colorado and Ohio.
The calculations assume 2008 revenue grows by three percent per year and use a “wildly optimistic” assumption of an eight percent annual return on assets reinvested in full.
Thirty-third is New Mexico’s rank for business tax climate for the just completed fiscal year, FY 11, that ended June 30. First is best, 50th is worst. The Tax Foundation (www.taxfoundation.org) produces the annual report.
A more relevant number here might be ten. That’s the number of places New Mexico dropped from FY 10 to FY 11.
Rankings for previous years were: FY 09, 26; FY 08, 29; FY 07, 25; FY 06, 23.
South Dakota, Alaska and Wyoming led the tax climate ranking for FY 11. The clear implication is that while tax climate matters for prosperity and business location, other factors come into play such as having people in the state and being close to major markets.