Coloradans are about to be inundated with ads about all the different initiatives that will be on the ballot this November. All told, there are 11 statewide ballot measures this year and it’s likely to get confusing. Luckily, there’s one ballot measure that is a no brainer for our state: Proposition #121 – the State Income Tax Rate Reduction measure.
Unlike President Biden’s Inflation Reduction Act, which literally does nothing to lower the rate of inflation, Proposition #121 does exactly what the title of the measure says it will do – lower state income taxes for everyone. Precisely, it will reduce the state income tax rate from 4.55% to 4.4% and would be retroactive for income earned in 2022. In sum, this will reduce total state income tax collections by a combined $572 million.
That’s real money that will be going back into working Coloradan’s checking and savings accounts. But what’s more attractive about this measure is that Proposition #121 will save Coloradans money far into the future.
Projections by the Common Sense Institute, a nonpartisan policy think tank, shows that Proposition #121 would save Colorado taxpayers at least $1.6 billion over the first 5 years after its passage.
See the full article by Michael Fields, September 26, 2022