(May 3) – A bill to help make sure the state’s economic recovery benefits more working Coloradans and their families won preliminary House passage today.
SB13-001, sponsored in the House by Rep. Daniel Kagan (D-Cherry Hills Village), would enact a permanent state earned income tax credit of 10 percent of the federal EITC, and would create a Colorado child tax credit.
The first, larger credit would be triggered when the state has a budget surplus subject to a TABOR refund; the second, when the federal Marketplace Fairness Act and conforming Colorado legislation are enacted. Together, the tax credits would save approximately 400,000 low-income Colorado working families more than $100 million.
“The earned income tax credit has been one of the most bipartisan-supported antipoverty programs in the history of the United States,” Rep. Kagan told the House. “It rewards and incentivizes hard work. It comes back only to those who are working.”
“It’s not a handout,” Rep. Kagan continued. “It’s a return of some of the taxes they have paid, allowing them, rather than the government, to decide how they should spend their hard-earned dollars.”
“We have passed out tax credits before, and they have been for good purposes,” Rep. Kagan said, noting that low-income Coloradans pay taxes at nearly twice the rate of the wealthy. “But one of the groups that always gets forgotten when these tax credits are enacted is the hard-working, low-income Coloradans. We can redress that imbalance.”