Amendment 87: GRADUATED INCOME TAX

AMENDMENTS: proposed changes to Colorado’s Constitution that are hard to reverse. Need a super majority (55%) of all votes cast to pass. Once it becomes law, no one can change it without another vote of the people. Amending the constitution makes any future efforts to revise or repeal state laws go to a vote of the people instead of resting in the hands of the legislature.

BALLOT MEASURES: aka: public questions. Refer to the fundamental concept of asking citizens to approve new state laws or issues through the process of voting. Need a simple majority (50% plus one vote) to pass. Once it becomes law, state lawmakers can change it.

PROPOSITION: a ballot measure that has been assigned a specific number & title for clarity.

87GRADUATED INCOME TAX

should we replace Colorado’s flat income-tax with graduated rates?

A flat tax is a system that applies the same percentage rate to all taxpayers equally regardless of income. A graduated or “progressive” tax is a system where you pay more as your income increases. This changes the way in which Coloradans are taxed AND is a MASSIVE tax increase ($~2.7B just in the first year).

A lot of economists view this as the beginning of the end for the CO economy. This amendment would raise income taxes up to 8.4% on people earning more than $500K per year. It would MINIMALLY reduce taxes on people and businesses earning less than $100K per year. Think about our small local businesses (doctors, dentists, sports athletes and other professionals). They all work so hard and would have to pay the state nearly 10% in income taxes – a high cost just to do business in CO.

Those who can leave, will. 100% of them will pass any increases in taxes onto their customers and any money that would normally go to raises and benefits will now be going to the government. So…again…the losers will be the average Coloradan.

The flat tax is what has made Colorado so attractive for so many years. In a time when individuals and businesses are fleeing states with high taxes for those with lower ones, this puts CO among the highest tax states in the nation! If this passes it is effectively the end of TABOR as it would remove the current constitutional requirement that taxable income gets taxed at one rate.

Also…and very importantly, it is NOT TIED TO INFLATION! So…with enough time this is a tax increase for everyone. Because people’s incomes will increase pushing them into higher brackets but their purchasing power won’t keep up because of inflation.

Supposedly these funds would go towards K-12 schools, healthcare and early childhood programs. “Do it for the kids!”

*Note: this amendment only requires a simple majority (50% + one vote) to pass because the Title Board found this amendment only repeals constitutional language. The normal, higher requirement for amendments (55% majority) does not apply to measures limited to repealing (in whole or in part) a provision of the state constitution.