Category Archives: Taxes

Jan 03

Best And Worst Policy Developments Of 2019

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Best And Worst Policy Developments Of 2019

Daniel J. Mitchell
Daniel J. Mitchell
|
Posted: Jan 02, 2020 8:50 AM
Best And Worst Policy Developments Of 2019

Source: AP Photo/Evan Vucci

’m trying to be a glass-half-full kind of guy, so we’ll start with the best policy developments for 2019.
Boris Johnson’s landslide victory – I was in London for the recent U.K. election and was pleasantly surprised when Boris Johnson won a surprising landslide. That’s not a policy development, of course, but it’s first on my list because it presumably will lead to a genuine Brexit. And when the United Kingdom escapes the sinking ship of the dirigiste European Union, I have some hopes for pro-market policies.

TABOR wins in Colorado – Without question, the best fiscal system for a jurisdiction is a spending cap that fulfills my Golden Rule. Colorado’s constitution has such a policy, known as TABOR (the Taxpayer Bill of Rights). Pro-spending lobbies put an initiative on the ballot to eviscerate the provision, but voters wisely rejected the measure this past November by a nearly 10-point margin.

To read the rest of this story, please click (HERE):

Jan 02

SLOAN | To tone-deaf tax hikers, ‘no’ translates to try, try again

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This year’s defeat of Proposition CC was a bitter experience for the state’s Democrats and liberal groups, but apparently not a didactic one, at least for the latter. Proposals are already in the works for some new iterations of the ubiquitous tax-increase ballot measures which crop up every second election or so, just to see if perseverance will ultimately win out over fiscal literacy.

Most of the proposals are conjured up by groups like the leftist Colorado Fiscal Institute, which houses some presumably very bright people whose economic analysis nevertheless boils down invariably to tugging on the General Assembly’s sleeve and pointing at someone else’s wallet.

Carol Hedges, executive director of CFI, said in an interview in some other publication that “what I took away from Prop. CC was that was not the solution.” Clearly. She goes on to say “that solution didn’t address the concerns of folks who voted in the election, and we have an obligation to solve those problems.”

What problems are those, exactly?

To read the rest of this story, please click (HERE):

Jan 02

Income tax rates decreasing in Colorado in 2020 as TABOR Refunds kick in

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DENVER — It’s official. Coloradans will be giving less to Colorado state government in 2020.

Governor Polis made the announcement official in an oped this morning with The Colorado Sun. 

Income tax rates will be decreasing from a flat 4.63% to 4.5%.

The decrease was mandated by the Colorado State Constitution and the Taxpayer Bills of Rights (TABOR) which limits how much government can grow each year.

Passed in 1992, this is the first year TABOR has triggered cuts. As opposed to sending checks to taxpayers, income tax rates will be cut instead.

To read the rest of this story, please click (HERE):

Dec 31

TABOR 2019 State of Colorado Taxation Division Website

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TABOR 2019

Decorative Image

History of TABOR

The TABOR Amendment was approved by voters in 1992. This amendment to the Constitution of the State of Colorado limits the amount of revenue the state can retain. The TABOR limit is equal to the lesser of the prior fiscal year’s revenue limit plus the rate of inflation and population growth in Colorado or the current fiscal year’s revenue. Also, the TABOR Amendment requires voter approval for certain tax increases. For more information about TABOR, visit the Legislative Council TABOR web page.

TABOR Refund

Hide2019 TABOR Refund Amount
The 2019 TABOR refund will be different from 2015, when there was a sales tax refund. This year, the TABOR income tax rate reduction will result in either a larger refund, if the taxpayer over withheld in 2019, or a smaller bill, if the taxpayer did not withhold enough/make enough estimated tax payments. The refund amount will be different for each taxpayer, based on their unique income tax situation.
Dec 31

For the first time, TABOR triggers an income tax rate cut. Here’s how much you can save on 2019 taxes.

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Colorado will temporarily lower the income tax rate to 4.5% — a move Gov. Jared Polis is celebrating despite concerns from his party

Colorado is poised to return $428.3 million to taxpayers this year, but don’t look for a refund check in the mail.

The Taxpayer’s Bill of Rights mandates the rebate because the state exceeded the revenue limits in the 2018-19 fiscal year. The TABOR excess is so great it will force the state for the first time to temporarily reduce the income tax rate.

The automated rate cut is being celebrated by Gov. Jared Polis — even though he supported an unsuccessful ballot measure to end TABOR refunds in the future.

The new temporary rate for calculating 2019 state taxes is 4.5%, a decrease from the standard 4.63% flat income tax rate. And how much people will save varies widely depending on their income level.

For those who make up to $40,000 to $85,000 in adjusted gross income, the average tax break ranges from $58 for single filers to $31 for joint filers, according to a legislative analysis. And for those who make $226,000 or more, it will top $600.

To read the rest of this story, please click (HERE):

Dec 27

Any TABOR measure needs to say what it is

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Any TABOR measure needs to say what it is

By THE DAILY SENTINEL

If we asked readers to give us their honest feedback about Article X, Section 20 of the Colorado Constitution, we doubt we’d get any. Who, besides lawmakers or legislative staff, could even hazard a guess as to what issue that part of the Constitution addresses?

But if we asked readers to give us their honest feedback about the Taxpayer’s Bill of Rights, that’s a different story. Even if you didn’t have a firm position on whether it affects the state’s ability to deliver government services, you’d at least be familiar with the general subject matter.

To read the rest of this story, please click (HERE):

Dec 26

Group restarts tax fight, files 35 ideas for Colorado ballot

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Ballot proposals would move the state back toward a graduated tax
By Brian Eason The Colorado Sun

Wednesday, Dec. 25, 2019 12:25 PM
Lawmakers meet in the Colorado House of Representatives on May 1.

Jesse Paul/The Colorado Sun

Dec 26

Slower economic growth, higher TABOR refunds projected in government forecasts

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FILE - Colorado State Capitol
Clouds build over the state Capitol in downtown Denver.

AP Photo/David Zalubowski

Two forecasts for Colorado’s economy cite continued growth in the state, but noted a tight labor market would cause that growth to be muted in the coming years.

The state legislature’s Joint Budget Committee has received forecasts from the Legislative Council Staff and the Office of State Planning and Budget.

The forecasts estimate that taxpayers will see refunds granted by the Taxpayer’s Bill of Rights (TABOR), as the state collects revenue above the state spending cap.

In a statement, House Democrats said the spending caps “limit the state’s ability to invest in critical priorities, such as education and transportation.”

The Legislative Council staff forecast said the state can expect to see economic activity expand as job growth and rising wages continue.

To read the rest of this story, please click (HERE):

Dec 23

The tax fight continues in Colorado as liberal group files 35 more ideas for the 2020 ballot

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Voters cast their ballots at downtown Denver’s Bannock Street polling location on Election Day, Nov. 5, 2019. (Jesse Paul, The Colorado Sun)

The proposed ballot initiatives would move the state back toward a graduated, or progressive, tax system that would mean higher taxes for the wealthy

With the November defeat of Proposition CC, the score has become so lopsided in favor of fiscal conservatives, the outcome of any given skirmish over the Taxpayer’s Bill of Rights is starting to feel like a foregone conclusion.

But to Democrats and aligned interest groups, the losing streak at the ballot box when it comes to tax hikes for schools, roads and higher education just means they haven’t found the right game plan.

“What I took away from Prop. CC was that was not the solution,” says Carol Hedges of the Colorado Fiscal Institute, a liberal tax policy group. “That solution didn’t address the concerns of the folks who voted in that election, and we have an obligation to solve these problems.”

So barely a month after voters defeated the measure to eliminate the state’s spending cap, Hedges’ organization is back on the offensive, introducing an eye-popping 35 new tax-related ballot initiatives for 2020. The specifics vary from proposal to proposal, but a single theme unites them: creating what the left views as a more equitable tax code that requires the wealthy to pay more to fund public services.

To read the rest of this article, please click (HERE):

Dec 17

Happy New Year From Your Colorado TABOR Foundation!

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By a vote of 55% to 45%, you helped defeat Prop CC to remove TABOR spending limits, but they’re at it again.

Anti-TABOR activists are already testing ballot language for a 2020 initiative to unwind your Taxpayer’s Bill of Rights. With a high Democratic voter turnout, they see next year’s election as their chance to amend the State Constitution to give government taxing authority without a vote of the people.

The TABOR Foundation educates voters on how the Taxpayer’s Bill of Rights protects their livelihood and why it matters to their family’s future.

We give seminars, media interviews, social media updates, and we’re a primary contact for citizens asking for help when their local jurisdictions violate TABOR mandates.  Importantly, we engage in legal action to protect TABOR.

Defending freedom costs time – and money. We need more help. What can you do to help us?

Please send your donation of $50, $100, $150 or more. Checks payable to TABOR Foundation, a 501c3 not-for-profit organization, may be tax deductible as allowed by law.

And, we welcome your service with our Board of Directors, Speakers Bureau, or in some other capacity.  Please call me to talk about being more involved.  Thanks!

 

Sincerely,

Penn R. Pfiffner
Chairman
303-233-7731

TABOR Foundation
720 Kipling St.
Lakewood, CO 80215
www.thetaborfoundation.org