Taxes 101
When everyone, regardless of income, pays the same percentage of their income in taxes.
What is a flat tax?
The year that TABOR was passed by Colorado voters.
What is 1992?
The two ways that laws can be created in Colorado.
What are the legislative (or referendum) process and the initiative process.
Colorado's current flat tax rate.
What is 4.4%?
The number of states in the nation that have a tax payer bill of rights.
What is only one: Colorado.
What category of taxes have Colorado voters been most willing to pass in order to raise revenue for needed services by creating special funds, outside of TABOR limits.
What are "sin" taxes? (excise taxes)
The type of taxation formula that is more fair and equitable.
What is a progressive or graduated tax?
Strips the legislature from its authority to raise revenue through taxation
Prohibits a progressive tax plan option
Caps revenue
Sets election provisions, especially with regard to language on the ballot.
What are the 4 major (and devastating) provisions of TABOR
The two most successful targeted tax credits in terms of supporting lower income working families.
What are the Earned Income Tax Credit and the Child Tax Credit?
The way of reducing one's overall tax bill that provides the most benefit to low wage earners.
What is a tax credit? (As opposed to tax deductions)
The referendum that allows the state to retain and spend revenue above the original TABOR limits.
What is Referendum C or C Cap?
The most recent detrimental effect of being a rolling conformity state.
What is HR1? better known to us as the One Big Betrayal Bill Act
When a state automatically adopts changes to the federal tax code into their own tax code.
What is rolling conformity? ***States can decouple from specific federal provisions.
The TABOR limit includes revenue from both the General Fund and the Cash Fund, but refunds only come from one of these funds, thus highly impacting revenue available for essential services.
What is the General Fund.
1. Repeal TABOR
2. Remove flat tax
3. Change the formula for growth limits
4. Repeal and replace TABOR with a growth measure
5. Restore legislative power to raise revenue in particular circumstances
What are viable reform options to deal with TABOR's stranglehold on the Colorado budget?