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Inflationary Bracket Creep With Initiative 195 Could Push More Coloradans Into Higher Tax Brackets
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Complete Colorado, Approved, Commentary, State

Inflationary Bracket Creep With Initiative 195 Could Push More Coloradans Into Higher Tax Brackets

By Nash Herman | Commentary, Complete Colorado Initiative 195, the proposed ‘progressive’ income tax ballot measure, promises long-term pain for Colorado taxpayers due to what economists call “bracket creep.”  But we do not need to speculate about the impact of bracket creep, as we can already see its effect in action since voters passed Proposition FF in 2022.  Proposition FF Through Proposition FF, voters decided to increase taxes on high-income Colorado earners to support a universal school lunch program.  The measure capped state deductions for tax filers with a federal adjusted gross income exceeding $300,000 and directed new revenue to the Healthy School Meals for All (HSMA) program.   READ THE FUL...
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Colorado Voters To Decide Whether To Cap State Income Tax At 4.4%
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Colorado Politics, Approved, State

Colorado Voters To Decide Whether To Cap State Income Tax At 4.4%

By Thelma Grimes | Colorado Politics Election officials on Thursday confirmed that the proposal to cap the state’s income tax at the current rate submitted signatures and voters will consequently decide its fate this November. The fight over tax rates is part of the tug and pull in Colorado between opposing political forces feuding over state revenue. One side of that fight argues that Colorado isn’t generating enough revenue to spend on state priorities, such as education. The competing side counters that the state already collects enough — but policymakers’ spending priorities are misplaced. The Secretary of State’s Office on Thursday cleared Initiative No. 232 after Advance Colorado, the group behind it, submitted more than 184,000 signatures to get it on the b...
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Colorado Graduated Tax Initiative Draws Major Support From Democratic Lawmaker’s Nonprofit
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Complete Colorado, Approved, State

Colorado Graduated Tax Initiative Draws Major Support From Democratic Lawmaker’s Nonprofit

By Sherrie Peif | Complete Colorado DENVER – State Rep. Lorena Garcia, a Westminster Democrat, has been working overtime to ensure a progressive state income tax initiative makes it in front of Colorado voters this November, including donating big bucks via a tax-funded nonprofit to the issue committee charged with getting the measure on the ballot. If passed, Initiative 195 would raise the current flat tax rate of 4.4 percent to 7.4 percent for those earning more than $500,000, and increasing as incomes rise to a top rate of 8.4 percent for those earning more than $1 million. A majority of Colorado taxpayers might see a slight income tax reduction, with many eventually getting caught up in the graduated brackets, as they are not indexed for inflation. ...
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Colorado Progressive Tax Plan Raises Long-Term Bracket Creep Concerns
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Complete Colorado, Approved, State

Colorado Progressive Tax Plan Raises Long-Term Bracket Creep Concerns

By Nash Herman | Complete Colorado Proponents of a progressive state income tax claim that it will give most Coloradans a break on their taxes.   Those familiar with history, inflation, and bracket creep see a much different long-term picture.   Repeating history The US adopted a federal income tax in 1913, justified by the claim that only about one percent of the population would pay the tax in its earliest years.  Does this sound familiar?   Proponents of Initiative 195, the ballot measure to switch Colorado’s 4.4 percent flat income tax rate to a progressive tax, are adamant that the measure is fair because 97 percent of filers will receive a tax cut.  READ THE FULL ARTICLE AT COMPLETE COLORAD...
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Two measures. Two opposite answers. One Colorado income tax rate.
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Rocky Mountain Voice, State, Top Stories

Two measures. Two opposite answers. One Colorado income tax rate.

By Shaina Cole | Contributing Writer, Rocky Mountain Voice Colorado voters may face a choice in November between two measures that couldn't disagree more about the state income tax. One would replace the flat rate with a graduated system and raise close to $2 billion a year. The other would make it illegal to raise the rate at all. Neither one is a new idea. And the differences between them go deeper than the rate. What each one does Colorado's income tax has been flat since 1987, meaning everyone pays the same percentage regardless of what they earn. The rate is currently 4.40 percent. Initiative 195, backed by a coalition led by the Bell Policy Center, would replace that with six brackets.  The Legislative Council Staff, which produces nonpartisan fiscal analys...
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Colorado SNAP Error Rate Could Leave Taxpayers Paying Millions More
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Complete Colorado, Approved, State

Colorado SNAP Error Rate Could Leave Taxpayers Paying Millions More

By: Logan McCahill | Complete Colorado For the first time since the Great Recession, 1 in 10 Coloradans are enrolled in the Supplemental Nutrition Assistance Program (SNAP), more commonly known as food stamps. The federally subsidized program provides families below a government-established income level with food benefits to help with grocery bills. Starting in October of 2027, Colorado will begin paying a share of these benefits due to the One Big Beautiful Bill Act. The amount taxpayers will owe depends on how many people participate in SNAP and how accurately the state processes them, both of which are growing issues for Colorado.   Rising enrollment Between 2020 and 2025, SNAP enrollment grew more than six times faster than Col...
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If more education spending works, why not require proof?
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Colorado Accountability Project, Approved, Commentary, State

If more education spending works, why not require proof?

By Cory Gaines | Commentary, Colorado Accountability Project This coming November voters will be deciding on Proposition NN and possibly Initiative 195, the former being a referred measure by our state legislature and the latter a ballot initiative which as of this writing was out for signatures with no definitive answer on whether it will be on the ballot yet. Both measures are of the type I like to label with “won’t someone think of the children?!” That is, both of them are geared emotionally to tap into the completely natural desire to help children. The thing is, there are some problems with the reasoning in both. To demonstrate, I will lean heavily on the well-written op ed about education funding from one of the interns at the Independence Institute (as well a...
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Colorado Health Care Costs Keep Climbing Despite Growing State Subsidies
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Complete Colorado, Approved, Commentary, State

Colorado Health Care Costs Keep Climbing Despite Growing State Subsidies

By: Nash Herman | Commentary, Complete Colorado In economics, it is well understood that the larger a business becomes, the more cheaply it can produce goods or services due to lower relative fixed costs, more technical know-how, and increased specialization.  Why then is Colorado’s largest industry in terms of employment–health care–only becoming more expensive?  Subsidies inflate costs Let’s back up. In 1990, Colorado’s largest industry by employment was retail, which also dominated most of the rest of the country’s employment as well, along with manufacturing.  Along the way retail and manufactured goods became cheaper for consumers, as expected, relative to inflation.  READ THE FULL ARTICLE AT COMPLETE COLORADO ...
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Medicaid Commission Begins Review as Colorado Spending Continues to Climb
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Complete Colorado, Approved, State

Medicaid Commission Begins Review as Colorado Spending Continues to Climb

By: Nash Herman | Complete Colorado Colorado’s interim Commission on Medicaid has begun meeting to address the explosive growth of the state’s health care spending.  Related concerns are also on the table, such as the management of the Department of Healthcare Policy and Financing (HCPF) and fraud, waste, and abuse.  Are legislators attacking these problems from the correct angles? Let’s find out.  Faulty premises The most recent Commission meeting raised questions about the government’s priorities in addressing Medicaid and the state budget.  A recurring theme of discussion —nothing new, yet one that actually exacerbates the very problem the Commission is attempting to address — is the idea that the health care fun...
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Initiative 195 would raise taxes on Colorado’s top earners. A new report asks whether they’d stay.
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Rocky Mountain Voice, State, Top Stories

Initiative 195 would raise taxes on Colorado’s top earners. A new report asks whether they’d stay.

By Jen Schumann | Rocky Mountain Voice The income tax on a Colorado household earning under $25,000 would fall by $9 a year under Initiative 195. A filer reporting between $2 million and $5 million would pay about $13,914 more. Both figures come from the measure's certified ballot title. The Common Sense Institute, a free-market policy group in Greenwood Village, says that second household is also the one most likely to pack up and leave Colorado, and that the state would lose part of the revenue the tax is supposed to bring in right along with it. Initiative 195 would end Colorado's flat income tax. The state taxed income on a graduated scale for its first 50 years, then switched in 1987 to a single rate, now 4.4 percent, that applies to every earner.  In its place, 1...
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