Amendment 87 would be the largest tax increase in Colorado history. Proposition 136 caps the state income tax rate at today's 4.4% — for families and job creators alike.
Raises the income tax rate from 4.4% to as high as 8.4% and lets lawmakers keep billions instead of refunding it under TABOR.
Locks in the current rate for individuals and corporations — telling the state working families don't need to pay any more.
If passed, Amendment 87 would create a $2.7 billion annual tax increase by raising the 4.4% income tax rate to 7.4% for those making $500K and to 8.4% for those making $1M plus.
It's being sold as a "tax the rich" measure, promising very small tax cuts to those who make under $500K. But it could also remove state tax deductions on income — including those for seniors on Social Security and military veterans — while sending jobs and revenue out of the state.
At a time when Colorado ranks as the third most expensive state, the last thing we need is a proposal that hurts our economy by driving people and businesses out.
Amendment 87 must be defeated — and there's a competing measure we can pass. Proposition 136 is a 4.4% income tax cap. It would cap the income tax rate for individuals and corporations at the current rate.
Keeps the income tax rate for individuals and corporations right where it is today.
Where the measures conflict, the one receiving the higher percentage supersedes the other. The tax cap can cancel out the worst effects of the progressive tax.
Adds language that future tax-hike efforts would have to repeal first, making it harder to put higher taxes on the ballot again.
Replacing Colorado's long-standing flat tax would let lawmakers keep billions every year instead of refunding it to taxpayers under TABOR.
With 87's revenue removed from TABOR limits, lawmakers — not voters — would decide how the money is spent, based on a one-time vote with few restraints.
The top 1% of earners effectively support about one-fifth of the General Fund. Losing even a small fraction could push the tax burden onto the middle and lower class.
It's proposed in a year the state reports a $1.5 billion budget shortfall. Rather than reducing spending, it directs billions more into the state budget.
When California considered a similar wealth tax, $27 billion in revenue left the state. When Massachusetts passed a progressive tax, 150,000 people moved out.
Higher taxes on businesses and top earners would likely drive out higher-income residents — making Colorado even less affordable for everyone who stays.
For years, Coloradans have had a flat income tax. In the last six years, we've voted to cut the income tax rate twice. People aren't exactly eager to pay the government more.— Michael Fields, op-ed in the Colorado Springs Gazette · Read the full op-ed →
Check your ballot and vote both measures. Defeat the largest tax increase in state history, and lock in the 4.4% cap.