Kagan’s Tax Cut Bill Heads to Hick

(May 6) – The House gave final legislative approval today to a bill to help make sure the state’s economic recovery benefits more working Coloradans and their families.

SB13-001, sponsored in the House by Rep. Daniel Kagan (D-Cherry Hills Village) and in the Senate by President John Morse (D-Colorado Springs), 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 in taxes.

Despite broad bipartisan support for the federal EITC, which goes only to working taxpayers, the 37-28 vote for Senate Bill 1 was strictly party-line.

“It’s remarkable that the House Republicans would vote en masse for higher taxes and against tax cuts for low-income working Coloradans,” Rep. Kagan said after the vote.

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