By Brian Eason and Jesse Paul | The Colorado Sun
Democrats in the Colorado legislature on Tuesday announced a deal with Gov. Jared Polis to make sweeping changes to the state tax code that reduce income taxes and redirect hundreds of millions of dollars of taxpayer refunds to low-income parents and the middle class.
The tax package, spread across a handful of different bills in the final days of this year’s lawmaking term, represents an escalation of the legislature’s recent efforts to reimagine the Taxpayer’s Bill of Rights — a darling of the conservative movement — as a vehicle for progressive policy.
Under the TABOR amendment, the government must refund money to taxpayers when revenue rises faster than the combined rate of inflation and population growth. This fiscal year, it’s expected to trigger roughly $2 billion in refunds that would go out in 2025 — but lawmakers have wide discretion in how they distribute the money.