On June 22, 1987, Colorado became the first state in the nation to move from a progressive income tax code to a flat rate when then-Governor Roy Romer (D) signed House Bill 1331 into law. Now, nearly four decades later, A ballot measure campaign dubbed “Protect Colorado’s Future” (PCF) is seeking to move the state back to a progressive income tax system.
“A coalition led by the Bell Policy Center is pushing the proposal, which is estimated to lower taxes for any person or company making less than $500,000 a year and raise them for those making more,” noted Ed Sealover, vice president of the Colorado Chamber of Commerce, of the effort to put a graduated income tax initiative on the 2026 ballot. “The plan’s method of calculating taxes is complex, with businesses and individuals paying different rates on different portions of income, such as the first $100,000, the amount between $100,000 and $500,000, the amount between $500,000 and $750,000, etc. But Bell estimated it will create an effective tax rate between 4.2% and 4.4% for those earning $500,000 or less and effective rates from 4.9% to 9.2% for those making more, with the highest rate reserved for businesses and individuals generating $10 million or more.”
Read more here.