Some Republican state legislators remind us that no one’s life is a complete waste — some simply serve as bad examples. One of those bad examples can be found in Colorado. (AP Photo/P. Solomon Banda)
Congress just proved an amazing thing happens when Republicans remember to govern as Reagan Republicans.
The most substantial tax overhaul since the Reagan years has sparked our economy. Republicans in Congress gathered the courage to face down the pro-tax media, special interests, and the opposition of every single Democrat in Congress to help families keep more of what they earn. Already tax reform has resulted in at least 285 companies announcing wage increases, bonuses, and higher 401(k) matches for 3 million workers. Utility companies are reducing rates in response to the Tax Cuts and Jobs Act. Continue reading →
To comprehend how that’s possible, we need to understand the largest betrayal of Republican values in Colorado political history: the tax-hiking, debt-raising, TABOR-busting Senate Bill 267, sponsored by Republican state Sen. Jerry Sonnenberg and enabled by the schizophrenic leadership of Senate President Kevin Grantham.
The beauty of our Taxpayer’s Bill of Rights is that taxes and debt can grow as high as any communist would like, all you have to do is ask the voters first. But elected officials, doing their best Bernie Madoff, don’t want to ask for consent when they know the answer is going to be “no.” They re-label taxes as “fees” and debt as “certificates of participation,” so the Colorado Supreme Court lets them take our money without our voter consent.
In 2009, without asking, the state forced an extra tax on us when we’re sick and have to go to the hospital. In their best George Orwell, the legislature named this tax “The Hospital Provider Fee,” as if hospitals, not patients, pay it. The new “fee” generated more than $650 million in 2016, pushing Colorado’s revenue over its TABOR cap.
“We made great strides in 2017 defending TABOR and advancing policies that promote economic freedom,” Jesse Mallory, AFP’s state director and the former Colorado Senate Republicans’ chief of staff, said in a statement.
This morning the TABOR Foundation brought a lawsuit before the Colorado Supreme Court. As the Plaintiff, we have charged that both Denver’s Regional Transportation District (RTD) and its Scientific and Cultural Facilities District had violated the requirements of the Taxpayer’s Bill of Rights when they started imposing sales taxes on items that had been exempt; items that the Districts did not have voter approval to tax. The arguments were presented on appeal to the State’s highest court. Our Foundation was ably represented by attorney Steve Lechner of Mountain States Legal Foundation. He faced alone the four attorneys employed by the governments on the other side. Our side had lost at both the District (trial) level and at the Colorado Court of Appeals.
We knew going in that the Court is skewed to the Left and consistently finds reasons to subvert the clear language of TABOR. One Justice, Gabriel, asked a hypothetical about getting broad-brush voter approval that, because as the Justice admitted, it was not applicable to this case. Mr. Lechner nailed a question by Justice Marquez. She had asked him if a precedent out of Mesa County could mean that the entire argument about voting on a tax policy change was irrelevant as long as revenues did not exceed the overall District TABOR limit. Lechner cited to her chapter and verse on why the particulars of that precedent were wrong.
Steve Lechner also gave a summary that laid out the proper path for the Court to follow, showing that our lawsuit does not ask to have the statute declared unconstitutional, since it merely provides the necessary legislative permission for the newly imposed taxes. We don’t even ask that the relevant statute be overturned; only that the Districts then take the next logical step and ask the voters for permission to impose those taxes.
In my experience, we will have to wait several months for a Ruling to be issued. The TABOR Foundation thanks Mountain States Legal Foundation for its free representation and its thorough, excellent work. Both organizations has seen this through as far as we can, and the Supreme Court’s ruling will conclude the issue.
Say you had a box with a plant growing inside it. For reasons dark and twisted, the plant finds itself quite content to grow inside the black confines of the box. It gains inch after inch each week. Eventually, the plant runs out of room to grow but the box is a box. It can’t grow with the plant. The plant, doomed by its own prodigiousness, grows too big for its cramped home and crushes itself against the six walls of its cardboard prison.
So, what do plants and Colorado’s economy have in common? While I grant that it is a little melodramatic, I think it’s also an apt metaphor for the situation imposed by Colorado’s Taxpayer Bill of Rights.
In 1992, Colorado voters approved adding an amendment to Colorado’s constitution that put a cap on how much revenue the state is allowed to collect through taxes. It also requires the state to authorize any new taxes directly through voters by means of a referendum process. Any amount above the cap is refunded to taxpayers. This mechanism allows me to feed into an unhealthy obsession with Legos every year, as my tax return checks can be quite generous. However, at the same time Colorado’s constitution has a requirement in it that requires the state to increase education spending to keep pace with inflation.
One great way to think of both tax and spending mechanisms is to think of TABOR as the brake and Amendment 23 as the gas. TABOR limits government growth and spending while Amendment 23 keeps a steady drip of cash flowing into government expenditures.
Day one of the Colorado legislative special session ended with House Democrats advancing a bill to fix a mistake that could cost special districts as much as $6.9 million this year — but providing little reason to be optimistic that the measure can make it through the Republican-led Senate.
Legislators are grappling with a drafting error in the signature bill of the 2017 session that removed the ability of special districts to charge sales tax on retail marijuana, a gaffe that could leave districts a combined $6.9 million short on revenue this year if not fixed. The vast majority of that shortage — about $6 million — would be incurred by the Regional Transportation District that provides public transit in the Denver area.
A program to explain how the state budget works, how the Gallagher Amendment impacts property taxes and how the Taxpayer Bill of Rights (TABOR) affects local government will be held from 5-6:30 p.m. Friday at the Pueblo Convention Center.
The program, sponsored by the Pueblo West Citizens’ Council, will feature a presentation by the Colorado Fiscal Institute, an independent nonprofit, nonpartisan think tank.
According to the institute’s website, it “provides credible, strategic, independent and accessible information and analysis of fiscal and economic issues facing Colorado. Our aim is to inform and influence public policy debates and contribute to sound decisions that improve the well-being of individuals, communities and the state as a whole.”
A spokeswoman for the Pueblo West Citizens’ Council said the event is being put on because the group believes “that ‘we the people’ do a much better job of governing ourselves when we have all the available information in its most basic form. The truth, without spin, without any hidden profit agenda or emotional bias, no grandstanding or campaigning.”
Anti-tax advocate Douglas Bruce led the TABOR effort in 1992. “No one has had the impact on Colorado politics” that he has, according to one academic in the state. (AP Photo/Ed Andrieski)
The blue tag on the streetlight outside Robert Loevy’s Colorado Springs home in 2010 didn’t signal an upcoming utility project. It was a receipt to show he had paid the $100 to keep his light on for the year. The city was facing a decimating $40 million budget gap and, among many other cuts, it was turning off one-third of its streetlights. That is, unless residents could come up with the money themselves. “I could afford to pay it,” Loevy says today, “but I have to think that would have been a stretch for many lower-income people.”
Loevy, a retired Colorado College professor, says the lights-out incident — which earned Colorado Springs international infamy that year — is just one of the many instances in which Colorado’s Taxpayer Bill of Rights (TABOR) has only benefited those taxpayers who can afford to pay for services out of their own pocket. Loevy has been a vocal critic of the law. As he sees it, “TABOR has had its worst effects on poor people.”
TABOR Committee featured at national ALEC conference in Denver
Colorado’s Taxpayer’s Bill of Rights (TABOR) was in demand at the 44th Annual American Legislative Exchange Council (ALEC) meeting held at the Hyatt Convention Center in Denver at the end of July. The TABOR Committee board of directors and friends presented the case (in a three hour workshop session) showing other states how to adopt measures similar to TABOR. TABOR Committee Chairman Penn Pfiffner also addressed approximately 60 legislators and staff at a special session on July 28th concerning the importance of TABOR-like efforts in their own states.
TABOR is a Colorado constitution protection (approved by the voters of Colorado in 1992) that restrains tax increases to not greater than the sum of population growth and the rate of inflation without a vote of the people. It is the gold standard for all 50 states regarding sound fiscal responsibility. It protects the citizen’s right to be heard on tax increases that otherwise would not be subject to voter approval. It was because of TABOR that Colorado voters had the opportunity to recently reject two very large tax increases in Colorado. Amendment 66, a $1 billion tax increase proposal in 2013, and Amendment 69, a $25 billion tax increase proposal in 2016, were both soundly defeated at the ballot box by more than 60% of Colorado voters. TABOR made those votes possible.
The American Legislative Exchange Council is a nonprofit organization of conservativestate legislators and private sector representatives who draft and share model state-level legislation for distribution among state governments in the United States. ALEC provides a forum for state legislators and private sector members to collaborate on model bills—draft legislation that members may customize and introduce for debate in their own state legislatures. The ALEC annual meeting included keynote presentations by former US Speaker Newt Gingrich, Education Secretary Betsy DeVos, Colorado Congressman Ken Buck, Kentucky Governor Matthew Bevin, and other national leaders.
Please visit www.thetaborfoundation.org to learn more about TABOR and how you can help protect Colorado voter’s right to be heard.