It doesn’t matter if New Mexico’s state government recuperates its revenue it matters if New Mexico’s citizens are better off. As such federal, state, and local levels are worth considering not just state taxes, including changes in other outlays such as healthcare subsidies. Effective tax rates on marginal income often exceed 50% for American families even ignoring the income stream from daycare workers and facilities etc. US Government spending being 40.5% of GDP those kinds of marginal tax rates should be expected.

Now as a low population state implementing this at the state level means most of that federal savings/revenue helps people outside of the state, but that’s the issue with implementing such programs at the state level rather than an issue with the type of program itself.