The real problem with the Colorado graduated tax proposal is that it converts a Colorado Constitution limitation to a statutory enablement.
The proposal would permit the Colorado legislature to increase taxes on income at any time. This would be very dangerous for the State of Colorado. The proposal deletes a key provision of the Colorado Constitution that limits the Colorado legislature from changing the approximate 4.5% tax rate. The Colorado Constitution provision that would be deleted is as follows: “Any income tax law change after July 1, 1992 shall also require all taxable net income to be taxed at one rate, excluding refund tax credits or voter-approved tax credits, with no added tax or surcharge.”
Once deleted, the Colorado legislature could raise the tax rate as they see fit. The proposal entices voter approval of the key Constitution provision by proposing a tax cut on approxamately 98% of Coloradans. Yes this is enticing. However, going forward the legislature could raise taxes on those 98% at any time since the key Colorado Constitutuion would be gone forever.
As such, the proposal enables the Colorado legislature to tax at will, while deleting the Colorado Constitution limitation to tax.
Whether you are for or against this is up to you. You decide.