If Proposition 116 passes, someone making $1 million a year will get a tax cut of $800, while the average Colorado taxpayer who makes just over $46,000 a year would see only $37 in tax savings. In fact, 55% of the Prop 116's benefits — $90 million — would go to the top 3% of Colorado taxpayers.
An across-the-board tax cut like Proposition 116 makes Colorado's tax code even more unfair for families with low and middle incomes. Our communities need revenue to address the economic fallout of COVID-19, but Prop 116 will make even deeper cuts to services we need just so the wealthiest Coloradans can avoid paying their fair share.
Colorado has already cut $3.3 billion across the budget this year. This 25% total cut has been devastating for hundreds of thousands of Coloradans and no part of our state’s budget was spared. Some of the cuts we have already seen:
Prop 116 would demand another $154 million cut from our budget. To put that into context:
We can't afford to give the wealthiest Coloradans another tax break when so many families are struggling with the massive cuts to services and programs they rely on.
Income tax is just one portion of state and local taxes in Colorado. Once you factor in things like property and sales tax, the poorest 20% of Coloradans actually pay a higher share of their income in taxes than the top 1%.
Your effective tax rate is the average rate you pay based on all your taxable income.
Fair Tax Colorado is an effort that came out of the Vision 2020 Network, a network of organizations that have been working for the last few years to develop solutions to our unfair and inadequate tax code. Organizations who are part of Fair Tax Colorado include American Federation of Teachers, the Bell Policy Center, Colorado Education Association, Colorado People's Alliance, Colorado Fiscal Institute, Great Education Colorado, Together Colorado, and United for a New Economy.