This November, Colorado citizens will see Proposition CC on their election ballot. It begins simply “Without raising taxes …” Proponents of the initiative argue that Prop CC does not increase the 4.63 percent Colorado individual income tax rate, therefore it does not “raise taxes.” Prop CC goes on to ask “… may the State keep and spend all the revenue it annually collects after June 30, 2019, but is not currently allowed to keep and spend under Colorado law…” That sounds to me like the state wants to keep more of your money.
We all know the drill. You work hard all year and your employer deducts $2,000 (for example) from your paycheck and sends it to the state. In February you complete your tax return that is way too complicated, but you find out your employer withheld $200 too much out of your paycheck and the state sends it back. Good for you. You only had to pay $1,800 in Colorado income taxes for the year.
Same scenario as above, but this time your tax return showed that the correct amount of taxes were withheld by your employer. You’re disappointed as you could really use that tax refund to help buy clothes for your kids that seem to be growing like weeds. But once the state gets everyone’s tax returns, it determines that as a result of your Taxpayer’s Bill of Rights that is part of the Colorado Constitution.