A person puts a ballot into an election box in front of a Colorado flag.Though the 2026 election remains nearly 13 months away, debate is heating up around a proposed initiative that would replace Colorado’s flat 4.4% income tax with a graduated system that imposes higher tax rates on businesses and individuals with higher incomes.
A coalition led by the Bell Policy Center is pushing the proposal, which is estimated to lower taxes for any person or company making less than $500,000 a year and raise them for those making more. The proposal is expected to bring in between $2.4 billion and $3.25 billion in its first year, and at least one version of the initiative proscribes that new money would go to public education, health care, child care and non-policing programs meant to improve public safety.
The effort ran into a setback Wednesday before the state Title-Setting Board, which ruled unanimously that it deals with more than one subject, which is illegal under Colorado law. But rather than stop the initiative, the decision will require its backers, which also include groups like the Colorado Children’s Campaign and Colorado Consumer Health Initiative, to rewrite the proposal, potentially breaking it into multiple measures.
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The ballot measure, which sets up a “graduated” income tax, would also provide a tax break for households with incomes below the $500,000 threshold.