Showdown: Tax Hike Vs. Tax Cut in Colorado

It’s a showdown in the West as Colorado voters will have two key tax measures on the ballot: one to increase the tax burden, and one to reduce it.

Proposition FF and Proposition 121 are the ballot measures in question. Proposition FF is a tax increase to provide meals for all K-12 public school students. It is just another attempt by a Democrat-controlled legislature to siphon more funds from hardworking taxpayers rather than budget responsibly.

On the flipside, Proposition 121 would reduce both the individual and corporate rates by 0.15%, making them both 4.40%.

Check out ATR’s 2022 Ballot Measure Guide HERE.

If passed, Proposition FF would limit the amount of income eligible for state income tax deductions for single and married filers earning over $300,000, increasing their tax liability.

“Higher taxes mean less money for Coloradans to save or spend as they see fit,” argues Nick Coltrain of the Denver Post. “It also shouldn’t be the government’s responsibility to feed people’s children.” Revenue gained from the proposition, roughly $100 million of taxpayer money, would go towards supporting students who come from financially stable families more than capable of providing for their children.

During the current period of inflation and high living costs, this increase in taxes will exacerbate a family’s ability to save and invest. Additionally, there is a “real risk” that funding will be too low to support the program in its entirety, making it much more likely that the state will continue to ask for more in the future.

Proposition 121 provides a much-needed dose of optimism. It would allow taxpayers to keep more money in their pocket, and incentivize job creators to expand into the state or hire new staff. The Independence Institute deserves much credit for their continued work getting tax cut options on the ballot for Coloradans.

Moreover, recent data shows that people are fleeing states with high tax rates for states with more favorable rates. This tax cut will help Colorado be more competitive for workers and businesses, helping to attract new residents to the state.

If the proposition is passed, it will help Colorado families as they continue to deal with high inflation.

There is a stark choice between a tax hike and tax cut in Colorado. Voters will send a clear message about what they want in November.

ATR’s complete 2022 Ballot Measure guide is out! Learn about the key measures facing taxpayers at ATR.org/ballotguide.