Prop 116 – State Income Tax Rate Reduction (Lowering of Flat Tax Rate) (formerly Initiative #306)
POSITION: STRONGLY OPPOSE
Income taxes are 61% of the General Fund, any time the state isn’t collecting as much of them it means there will be less to invest in education, health care, transportation, and other priorities.
The tax cut provided in Proposition 116 does nothing to help the one in five Coloradans worried about losing their homes or being unable to feed their families over the next year . Per the Legislative Fiscal Analysis, if this measure passes, households making
- $50,000 a year would pay $40 less in income taxes annually (that equates to 77 cents a week). 77cents a week won’t even cover a purchase at the Dollar Store,
Sponsors of this ballot measure: a coalition that partnered with Jon Caldara and the Independence Institute, and Michael Fields of Colorado Rising Action, Unite for Colorado (Dustin Zvonek CEO of Unite for Colorado & an AFP alumnus), and Americans for Prosperity (aka Koch Brothers).
Ballot Language: Shall there be a change to the Colorado Revised Statutes reducing the state income tax rate from 4.63% to 4.55%?
“If passed, the measure reduces the income tax rate for tax year 2020 and would be expected to reduce revenue for FY2020. The measure reduces General Fund revenue by an estimated:
- $78.1 million in the current FY 2019-20
- $158.4 million in FY 2020-21
- $169.8 million in FY 2021-22