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CO Proposition 116 - State Income Tax Rate Reduction

Shall there be a change to the Colorado Revised Statutes reducing the state income tax rate from 4.63% to 4.55%?State Income Tax Rate ReductionThis proposal is an initiated amendment to the Colorado Revised Statutes which decreases the state income tax rate from 4.63% to 4.55%.Major Provision:Reduces the state income tax rate from 4.63% to 4.55% for all taxpayers on federal taxable income of every individual and corporation beginning on January 1, 2020.Background: The change from a progressive tax system to a flat 5% income tax for all taxpayers went into effect in the mid-1980s. The new income tax system resulted in large tax receipts for the state. These were diverted to Colorado taxpayers in the form of refunds through an initiated constitutional amendment TABOR (the Taxpayers Bill of Rights) approved by Colorado voters in 1992. The tax rate was lowered to 4.63% in the 2000’s by the legislature. Any change in the TABOR amendment or any new tax levied by Colorado governments must be approved by a vote of the people. State income tax collections are the main source of General Fund revenue which is the primary source for financing state government operations. Currently, most of the money in the General Fund is spent on health care, education, human services and other state programs._______________________________Proposición 116Reducción de la Tasa de Impuestos sobre los Ingresos EstatalesEsta es una propuesta por iniciativa para enmendar las Leyes Reformadas de Colorado, reduciendo la tasa de impuestos sobre los ingresos estatales de 4.63% a 4.55%.Las Provisiones Principales: Reduce la tasa de impuestos sobre los ingresos estatales de 4.63% a 4.55% para todos los contribuyentes con respecto a ingresos federales sujetos a impuestos de cada individuo y corporación, empezando el 1ro de enero, 2021. Trasfondo: El cambio de un sistema progresivo de impuestos planos de 5% sobre ingresos para todos los contribuyentes se ejecutó a mediados de los años 1980. El nuevo sistema de impuestos sobre ingresos resultó en grandes recaudaciones de impuestos para el estado. Estos fueron desviados a contribuyentes de Colorado en forma de reembolsos por medio de una enmienda constitucional por la iniciativa TABOR (la Declaración de Derechos de los Contribuyentes), aprobada por el electorado de Colorado en 1992. La tasa de impuestos se redujo a 4.63% en los años 2000 por la legislatura. Cualquier cambio a la enmienda TABOR o cualquier nuevo impuesto ejecutado por los gobiernos de Colorado debe ser aprobado por voto popular. Los cobros de impuestos sobre los ingresos estatales son la fuente principal de ingresos del Fondo General, lo cual constituye la fuente principal de las operaciones financieras del gobierno estatal. Actualmente, la mayoría del dinero del Fondo General es destinado a asistencia médica, educación, servicios humanos, y otros programas estatales.

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  • Yes - For the Measure

  • No - Against the Measure

Contact phone Americans for Prosperity Colorado Issue Committee 703-244-3200 ____ Energize Our Economy 303-279-6536
1. This proposal reduces income taxes for ALL Colorado taxpayers. With so many people out of work and struggling financially from the hardships of the COVID 19 pandemic, Coloradans need to keep more of their hard-earned money. Small businesses need relief from their tax burden in these hard times.

2. State revenue has risen every year for a decade. This proposal would decrease state revenues by less than 0.5% of this year’s budget. The last time Colorado made a modest reduction to its income tax rate, the state’s economy expanded. Income tax revenues actually increased by more than double the rate of inflation. Private enterprise, not more government spending, drives job creation and economic growth, which Coloradans need more than ever.
Contact phone Protect Colorado’s Recovery 303-570-5446
1. Few taxpayers would benefit from the proposed tax cut. About 75% of taxpayers would receive less than $50 a year. Wealthy people with incomes over $500,000 which represents less than 2% of taxpayers, will receive over half of the total tax savings.

2. Colorado’s economy and its people have suffered from the COVID economic and health crisis in recent months. The cuts in revenue following a tax cut would add to the losses in education, transportation, health care and other state services. At a time when much additional aid is needed, there will only be reduced funds to aid Coloradans. Resulting layoffs and reductions of critical state services will damage Colorado’s economy and quality of life even more.