NO! Proposition 116 is a decrease to Colorado’s existing flat tax ensuring that ALL taxpayers will receive a tax cut.
There was another initiative (#271) trying to change Colorado’s flat income tax to a progressive tax which would unfairly shift the bulk of the taxes to a small percentage of taxpayers. Proposition 116 reduces the rate of our existing flat tax, giving a tax reduction to ALL taxpayers.
The combination of our flat-rate income tax and TABOR has made for a sustainable gold rush which has turned Colorado into one of the most economically vibrant states in the country with one of the lowest unemployment rates.
We need to keep that gold rush going to keep public and private coffers filled. Proposition 116 drops the flat income tax rate to 4.55%.
Proposition 116 lowers Colorado’s flat income tax rate from 4.63% to 4.55% for everyone. All Colorado taxpayers will pay less state income tax if the ballot measure passes. Less money to the government means more money in your pocket.
According to the Legislative Council Staff (Nonpartisan Services for Colorado’s Legislature) the economic impact will be:
The measure decreases the amount paid in state income taxes for all taxpayers. Taxpayers will have more after-tax income available to spend or save, increasing their consumption of goods and services. The measure will decrease state government spending. Reduced government spending may decrease employment or wages among public sector employees and government contractors.
Any overall change in economic activity will depend on the net economic impact of higher after-tax household and business income and reduced investment in public services.
The measure is effective on the date that the Governor announces the results of the 2020 election, known as the proclamation. All taxpayers will be benefited. Even when candidate Polis supported an income tax cut, Legislative Democrats blocked this common sense approach.