Colorado Progressive Tax Plan Advances Seeking End to Flat Tax and TABOR Limits

By Sherrie Peif | Complete Colorado

DENVER — After years of voter-approved measures scaling back Colorado’s income tax rate, proponents of significantly higher government spending have cleared a major hurdle at the state Title Board towards raising taxes by $4.1 billion annually.  

Proposed Initiative #181 would replace Colorado’s flat income tax with a so-called “progressive” tax where taxpayers are charged higher rates based on their income.  

The initiative is being put forth by the Bell Policy Center, a progressive nonprofit led by former Colorado state rep. Chris deGruy Kennedy, who while in office advocated multiple times for such things as reducing refunds under the Taxpayer’s Bill of Rights (TABOR) and universal healthcare. The Title Board gave the green light to move forward on Dec. 3 after a battle over whether or not the proposal fit under Colorado’s single-subject law.  

The original draft of the measure not only replaced the current 4.4 percent flat tax rate with a progressive rate, but it also allowed Colorado to permanently keep all money raised over the revenue cap in place under the Taxpayer’s Bill of Rights (TABOR), and it would have ended TABOR’s prohibition on surcharges.  

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