Amendment 87 would replace the current flat rate with graduated rates for Colorado income taxes to generate much-needed revenue for K-12 education, health care, and child care.

 

Colorado currently has a flat rate tax of 4.4% on income. While a flat rate may sound fair, it hurts lower income households disproportionately and still fails to meet revenue needs. When all people in a state pay the same percentage, lower- and middle-income families feel those taxes more than upper-income families. Colorado’s current flat tax rate is considered the “39th most regressive tax code in the country” by the Institute on Taxation and Economic Policy.

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Most states, like the federal government, already use a graduated income tax because it just makes sense.

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Asking the wealthy to pay their fair share would mean $2 billion+ in increased revenue and help make up for current budget shortfalls in education, healthcare, and child care.

Federal policies and cuts have led to a budget crisis in Colorado. State legislators are facing revenue shortfalls that will force cuts to programs that millions of Coloradans need. Schools and health care will take the biggest hit. And next year, projections show that another $1 billion will need to be cut from the budget.

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A graduated income tax is a simple, fair solution that ensures that all of us pay what we should and all Coloradans can thrive.