Initiative 195 has made the Colorado ballot for November. If it passes, this would change Colorado’s state income tax from its current flat 4.4% to a graduated income tax (similar to how federal taxes work).
Proposed Colorado State Income Tax Brackets
As a result of these changes, it’s estimated to raise Colorado revenues by about $2 billion annually, which would go toward increasing funding for K-12 schools, healthcare and early childhood programs. How it will impact you will depend, of course, on your taxable income. This article at the Colorado Sun has a nice calculator where you can input your Colorado taxable income to see the difference. The short answer is that anyone with less than about $510,000 in taxable income will pay less, and those with higher incomes will pay more.
Here is a table from the Fiscal Summary Document (pdf) that’s required and is written by the nonpartisan legislative council staff. Note that this table is using federal Adjusted Gross Income (AGI), not taxable income.
As always, people should vote based on their own values and goals. For what it’s worth, I will be voting in favor.
Its not indexed to inflation and doesnt distinguish between married and single filers so net effect over time will be to increase tax on middle class.
It’s not indexed to inflation, but the brackets and rates are set by statute, so future legislatures could easily change it.
I’m not sure what your definition of the “middle class” is, but since you have to make more than $510,000 in taxable income in a given year, it will take a very long time (if ever) for the vast majority of middle class Coloradans to see a tax increase.