Colorado voters will decide Tuesday whether to reduce their state income taxes.
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Conservative groups have led the charge for Proposition 116, which would reduce the state’s income tax rate from 4.63% to 4.55%. And even though progressives have seen a higher turnout of their voters so far, that doesn’t necessarily translate to how Coloradans vote on statewide ballot issues.
The tax cut will help Coloradans suffering from the economic effects of COVID-19, proponents say. But opponents argue that it will significantly decrease state revenue that has already been reduced for programs people depend on while giving the wealthiest Coloradans a significant tax cut.
Colorado ranks 28th for its income tax burden, according to a WalletHub analysis, and state fiscal projections estimated earlier this year that the average worker will save about $37 if the measure passes. The state, meanwhile, would bring in $78.1 million less this fiscal year and more the following, according to that same projection.
Proponents of the measure include the Independence Institute’s Jon Caldara and state Sen. Jerry Sonnenberg, R-Sterling. Those backing the measure have said that the state budget loss shouldn’t be an issue with an increase in new revenue expected after the 2020 legislative session, and they expect the tax cut to fuel the economy and new jobs.
But opponents say more money for citizens now could actually translate to less in the long run when the state is no longer able to pay for programs such as full-day kindergarten or provide property tax assistance to senior citizens through the state’s senior homestead property tax exemption.
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