While congressional Republicans and President Donald Trump enacted tax relief for overtime workers nationwide as part of the One Big Beautiful Bill Act (OBBBA), Colorado Democrats are using it as an excuse to squeeze those workers for higher state taxes.
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“In April, legislators added into House Bill 1296 — a bill that made several changes to state tax exemptions — a requirement for residents to add the amount of overtime pay excluded from their federal income tax revenue to their Colorado taxable income,” Ed Sealover wrote in a July 17 article for The Sum and Substance, a news site published by the Colorado Chamber of Commerce. “This was a defensive move anticipating that Congress could exempt overtime compensation from federal tax income, as state officials said that mirroring federal law would cost Colorado $400 million to $600 million in annual revenue.”
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