As part of his new tax plan, the president has proposed ending the “step-up” in tax basis for inherited assets, and, furthermore, requiring the capital gains tax to be paid at death rather than when an heir later sells...
- The Tax Policy Blog
- Colorado Initiative Effort Begins for Higher Income and S...
Colorado Initiative Effort Begins for Higher Income and Sales Taxes
Earlier this year, Colorado Gov. John Hickenlooper (D) proposed reducing K-12 education spending from $5.4 billion in the current budget to $5.1 billion for the next budget, and reducing university spending from $547 million to $519 million. The final amount, in the end, was a $228 million reduction. Seeking to reverse this trend, left-of-center advocacy groups are launching a ballot initative drive to increase the state's income and sales taxes:
The plan would raise state personal and corporate income tax rates to 5 percent from the current 4.63 percent. The state portion of sales taxes would go from 2.9 to 3 percent.
The additional revenue could be used only for public schools and the state's higher ed system and couldn't be used to supplant existing funding. The measure sets 2011-12 spending for schools and colleges as a floor. Lawmakers would decide how the additional funding would be allocated among school districts and state colleges and universities. Ballot measure text.
The higher rates, which are the same as those in place before the legislature reduced them in 1999, would be in effect from 2012 to 2017.
The proponents will need 86,105 valid signatures by August 1.
Update: An earlier version of this post mistakenly identified Gov. Hickenlooper as a Republican.
Subscribe to the Tax Foundation Newsletter
Join the Tax Foundation's fight for sound tax policy Go
About the Tax Policy Blog
The Tax Policy Blog is the official blog of the Tax Foundation, a non-partisan, non-profit research organization that has monitored tax policy at the federal, state and local levels since 1937. Our economists welcome your feedback. If you would like to send an e-mail to the author of a blog post, please click on that person's name to locate his or her e-mail address or visit our staff page here.
Recent Blog Posts
Related State Articles
- Lessons on Legalizing and Taxing Marijuana from the Colorado and Washington Experience: Testimony to the District of Columbia Committee on Business, Consumer, & Regulatory Affairs and the Committee on Finance & Revenue
- New NerdWallet Report Projects Significant Revenues from Marijuana Legalization
- Taxing Marijuana: The Washington and Colorado Experience
- 1 of 24
- next ›