FLAT INCOME TAX CUT
SIMPLE, FAIR TAX CUT
This is a modest income tax cut of 0.15% for ALL taxpayers, from 4.55% to 4.40%. Everyone who pays income taxes will receive the exact same tax cut in proportion with what they pay.
JOBS AND ECONOMY
Mandates and lockdowns imposed in response to COVID-19 devastated Colorado’s economy, especially small businesses and working people. Our state’s unemployment numbers still trail the national average while businesses are struggling to find workers. While government spending may have plugged the gap during shutdowns, our economy can only fully recover when its businesses and workers recover.
Allowing people to keep more of their own money will allow them to get back on their feet faster while also attracting new businesses, entrepreneurs, job creators, and talent to our state.
ALREADY PAID FOR!
In the 2020 legislative session alone, the legislature increased taxes and fees by over $600 million per year without a vote of the people. This tax cut will give taxpayers back some of the money that has been taken without their consent.
The official Fiscal Impact Statement estimates that the measure, if approved, will save taxpayers $572 million in year one and about $400 million in year two.
THEY STOLE OUR TAX CUT
Thanks to massive, unexpected windfalls from income tax collections in fiscal year 2020-21, Colorado taxpayers will receive a $440 million TABOR refund. But most voters do not realize that the state took the tax reduction approved by voters with Proposition 116 out of their refunds!
By taking income tax rates down to 4.40%, voters will have a better chance in the future of receiving the tax cut they voted for.
POLIS CAMPAIGN PROMISE
Governor Polis campaigned on enacting “revenue neutral tax reform,” which would “eliminate deductions and loopholes that benefit special interests in order to cut taxes for all.” Last year, he signed a tax reform bill which increased taxes by eliminating certain tax deductions for businesses. He then endorsed Proposition 116, which cut taxes for all.
This year, Polis signed off on two tax reform bills which eliminated deductions, thus increasing taxes by $372 million per year. Like last year, we expect Governor Polis to support this measure to stay true to his campaign promise of “revenue neutral tax reform” that “cut[s] taxes for all.”
 The rate reduction is permanent, but Legislative Council Staff only estimates tax savings for the first two years.