Amendment 87 leaves small employers cutting pay or jobs, business groups warn

By Marissa Ventrelli | The Denver Gazette

A national organization said Colorado’s decision to pass a graduated income tax structure — which translates to a tax hike for businesses and residents earning $500,000 or more — means tough choices ahead for small businesses.

In a statement, the National Federation of Independent Business called the passage of Amendment 87 “disappointing for Colorado’s small business owners and taxpayers.”

“When taxes go up, small business owners face tough choices: raise prices for their customers, reduce employees’ hours, stop hiring, or cut jobs completely,” said Michael Smith, director of the National Federation of Independent Business. “Colorado has already become the 4th most expensive state in the country to live in. Amendment 87 is sure to push our ranking even higher while pushing job creators and needed investment to neighboring states with more competitive tax codes.”

Amendment 87 would replace Colorado’s flat income tax rate of 4.4% with a graduated rate, in which taxpayers earning $500,000 a year or more will see their liabilities increase, while those earning less will see a decrease of a few hundred dollars.

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