HB1311. New law plunders TABOR refunds.
During the legislative session just ended, legislators passed and the governor signed a new law that establishes a new income redistribution program.
Your expected TABOR rebate from the state government over-collecting taxes was reduced and got cut nearly in half.
The new law is known as House Bill 1311, which sponsors call the Family Affordability Tax Credit (FATC).
The measure diverts $684 million in the first year, using planned TABOR refunds to give subsidies to low-income families with children.
There are formulas for how households will be treated differently, depending on the age of the child and the amount of income earned by the parent.
How did the General Assembly get away with a costly new program that you did not get to vote on?
After all, the Taxpayer’s Bill of Rights requires that voters must approve the retention of taxes above the TABOR limits.
Proponents claim the scheme is a method to return the surplus.
The act creates a new refundable tax credit. Refundable means that the State will rebate to the welfare recipient money above any taxes that person owes.
This is a clear violation, as TABOR is to rebate over-collected taxes to those who paid and should be proportional when identifiable.
Income taxes are clearly identifiable.
There is no reasonable explanation that the State cannot identify who paid how much income tax and how much of a TABOR rebate that taxpayer should get.
The new law, HB1311 says:
- Eligible people are “residents.”
- They do not have to be taxpayers.
- They do not have to be citizens!
- They do not even have to reside in the state all year!
The TABOR Committee explored how to overturn HB1311 on this fall’s ballot.
Is there enough interest and funding to reverse the new law?
Action must be taken immediately and the effort is costly.
Arguments against the HB1311 program:
- Note that HB 1311 is in addition to the “Earned” Income Tax Credit bill and the Child Care Tax Credit, which also reduce our general TABOR rebates.
- While subsidizing families is arguably a government goal, it is done properly through welfare programs. In Colorado with TABOR in place, that would mean funding the program under the TABOR spending limits. It would require prioritizing the welfare subsidies within the budget imposed by the citizens. Instead, this bill establishes a new welfare program completely reliant on state TABOR surpluses.
- TABOR was never meant to become an instrument to redistribute income. The concept was that tax rates would be adjusted downward to eliminate any permanent over-collections.
If this program is so important to proponents, then why restrict it to TABOR refund years?
Legislators are ignoring a very important message by citizens in the landslide negative vote last fall against Proposition HH.
With a roar, they told the government to leave the TABOR rebates alone so that taxes over-collected by the state would be returned to the taxpayers.
A philosophic core of the Progressives, who control the current Colorado General Assembly, is the leveling of income.
This bill, HB1311, is a mechanism to redistribute income through the TABOR tax rebates.
We need to overturn this horrendous bill at the ballot box.
Will you join us in trying to do so and restore your TABOR surplus refunds?
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