This November, Colorado voters will vote on 14 statewide ballot measures. Among these is Amendment 87 – Graduated Income Tax (formerly Initiative #195).
ADVOCACYDENVER supports the passage of Amendment 87.
What would Amendment 87 do?
Colorado currently has a flat income tax rate. Regardless of income, every Coloradoan pays a 4.4% income tax each year.
Amendment 87 would change this flat tax to a graduated income tax. Those who earn more money would pay a higher percentage of their income in tax. Under the proposed system, 97% of Coloradans would pay less and only those who earn more than $500,000 per year would pay more.
As a result of this restructured income tax, Colorado will collect up to an additional $2.7 billion per year in taxes. According to terms in the amendment, this funding can only be spent on K-12 public education, health care, and child care and must be used to supplement current spending levels. An annual public audit is required to ensure that the funds are used appropriately.
| Annual Colorado Taxable Income | Current Flat Rate | Amendment 87 Rate |
|---|---|---|
| $0 – $25,000 | 4.4% | 3.7% |
| $25,000 – $100,000 | 4.4% | 4.2% |
| $100,000 – $500,000 | 4.4% | 4.4% |
| $500,000 – $750,000 | 4.4% | 7.4% |
| $750,000 – $1,000,000 | 4.4% | 7.9% |
| Over $1,000,000 | 4.4% | 8.4% |
Estimated Revenue: $2.0 billion ($2.7 billion max)
Eligible Uses: K-12 Public School Education, Health Care, Early Child Care
Why does ADVOCACYDENVER support Amendment 85?
Amendment 85 provides badly needed funding for public education and health care, including special education services for students with disabilities and health care services for those with disabilities who receive Medicaid. Because the Amendment includes language that the new funding be used to supplement, rather than replace, existing funding, ADVOCACYDENVER anticipates that passage would result in benefits for members of the disability community in Colorado.
Please look here for more information about Amendment 85.