GOP bill increases taxes on middle class and low-income families to cut taxes for millionaires
DENVER, CO– House Democrats on the State, Civic, Military and Veterans Affairs Committee today defeated Republican legislation that would have increased taxes on hardworking Coloradans in order to give thousands of dollars in tax cuts to millionaires.
“You shouldn’t have to be a millionaire to benefit from our tax code,’” said State, Civic, Military and Veterans Affairs Committee Chair Steven Woodrow, D-Denver. “The message from Republican lawmakers to Coloradans is crystal clear: "trickle down economics works.’ The bill we defeated today would have increased taxes on millions of Coloradans to give millionaires a $24,000 tax cut. With this proposal, a family would need to earn at least $162,000 a year to avoid paying more in taxes.”
“Coloradans deserve a tax system that works for hardworking Coloradans, not the wealthiest taxpayers,” said Joint Budget Committee Member Emily Sirota. “We’ve expanded the Earned Income Tax Credit and the Child Tax Credit to increase incomes for working families in our state by closing loopholes for the very wealthy and largest corporations. Permanent tax cuts like the one in this bill hurt middle class and lower-income Coloradans in order to cut taxes for the very wealthy. House Democrats will continue advancing legislation to build a fair tax code that works for all Coloradans.”
HB23-1063, sponsored by Representative Scott Bottoms, increases taxes on Coloradans making under $52,000 per year and joint fillers making under $162,000 per year in order to cut taxes for millionaires by tens of thousands of dollars. By reducing state revenues by billions of dollars, the bill would reduce TABOR refunds as a result. For lower-income taxpayers, this reduction would be more than what they would save through the reduced tax rate under the bill.
According to research prepared by the nonpartisan Legislative Council Staff (LCS), single filers with incomes below $52,000 will see an $85 benefit from the reduced tax rate while losing $249 of their estimated TABOR refund. Therefore, these filers will “pay a net $164 more in tax under the bill.” Taxpayers making nearly $300,000 per year, however, will see a tax cut of nearly $4,000, and millionaires would see their taxes cut by over $24,000.
The table below, prepared by nonpartisan LCS staff, shows the estimated TABOR refunds and taxpayer savings under the legislation for next year. Joint filers need to make over $160,000 to avoid paying more in taxes under this legislation.