DID YOU KNOW PROPOSITION 116…
IS A SIMPLE, FAIR TAX CUT FOR ALL INCOME TAX PAYERS
This is an income tax cut of .08% for ALL income tax payers, from 4.63% to 4.55%. Everyone who pays income taxes will receive the exact same tax cut in proportion with what they pay.
IS SUPPORTED BY GOVERNOR POLIS
On September 24th Governor Polis officially endorsed the measure, saying, “An income tax cut is broad-based relief and not only helps families get by in a challenging time but also helps our economy grow.” On August 24th the governor told the Colorado Sun, “We’ve long sought an income tax decrease [and] particularly in this challenging time, I think Coloradans certainly need tax relief.” The governor has continuously advocated for a lower income tax rate since his campaign for governor and throughout his tenure in office.
WOULD HELP THE STATE RECOVER FROM THE COVID-INDUCED RECESSION
This tax cut would expand the state’s economy and create new jobs, according to a non-partisan study by the Common Sense Institute. We need that now more than ever to help with recovery from COVID.
WOULD MAKE COLORADO MORE COMPETITIVE ECONOMICALLY
Colorado is competing with every other state for jobs, and a slim tax code is one of the main ways to attract businesses, entrepreneurs, and job creators. While Colorado has enjoyed the benefit of companies and people moving here from states with high taxes and a high regulatory burden, most notably California, those companies more often move to states with a lower tax burden. For example, Texas and Nevada – not Colorado – are the top two destinations for businesses leaving California. Neither state has any income taxes.
IS ALREADY PAID FOR!
The state of Colorado has created and collected billions of dollars in new taxes and fees from Coloradans in recent years without voter consent. This tax cut will give taxpayers back only a fraction of new revenues generated by the state without voter approval. For example,
- Prop 116 will reduce revenues by $154 million next year. From just two bills passed during the 2020 legislative session (HB 1420 and SB 215), the legislature created $170.7 million in new taxes not approved by taxpayers;
- the Hospital Provider Fee, created in 2017, costs taxpayers over $900 million annually;
- the Trump federal tax cut in 2017 has actually increased state tax revenues by over $5 billion according to legislation council analysis. About $400 million of that has already been collected.
Shall there be a change to the Colorado Revised Statutes reducing the state income tax rate from 4.63% to 4.55%?
For more information, visit realfairtax.com