This initiative stands in direct opposition to the Graduated Income Tax (Initiative 175). It’s purpose is to keep the current flat rate tax of 4.4% for individuals and corporations. While a flat rate sounds fair, it hurts lower income households disproportionately and still fails to meet revenue needs.

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. The Graduated Income Tax would introduce a graduated tax rate that would lower taxes on one end and raise taxes on income over $500,000. The extra revenue generated (an estimated $2 billion) would go to education, healthcare, and child care. This revenue would help make up for the shortfalls the state is experiencing from federal policies and cuts.

If voters choose to keep the flat rate tax, Colorado’s budget shortfall will force another $1 billion in cuts next year — with schools and health care taking the biggest hit.

In short, this initiative is regressive and fails to generate the needed revenue for Colorado.