Next week's election is a pivotal one for Colorado, as voters will decide a pair of ballot questions that could secure the state's low-tax, small-government reputation—or shatter it.
uncertain
that → decide → it
Confusingly, there is a slim possibility that they decide to do both.
asserted
they → be → both
The two competing ballot measures could hardly be more different.
uncertain
measures → compete → ?
The first, Proposition 136, would cap individual and corporate income taxes at 4.4 percent—the state's current flat rate.
asserted
first → cap → percent
The other, Amendment 87, would rewrite the state's constitution to allow for a progressive income tax.
asserted
other → rewrite → tax
It would also set new rates, ranging from 7.4 percent on income over $500,000 to 8.4 percent on income over $1 million.
asserted
It → set → million
And it would offer a modest tax cut to the lower end of the income spectrum: Individuals earning less than $100,000 would pay 4.2 percent, while those earning less than $25,000 would pay 3.7 percent.
asserted
those → offer → percent
Both advocates and opponents agree that it would generate about $2–3 billion in additional annual revenue for the state government.
asserted
it → agree → government
For now, the higher tax rates created by Amendment 87 would only apply to incomes over $500,000.
asserted
rates → create → 500,000
Unsurprisingly, supporters of the measure are framing this as an opportunity to make the wealthy "pay their fair share."
asserted
wealthy → frame → share
There are two reasons why that argument is a bit deceiving.
asserted
argument → be → ?
As Jared Walczak, a senior fellow at the Tax Foundation, points out, "the new rates would be statutory, while the authorization for a graduated-rate tax would be enshrined in the constitution, permitting the legislature to adjust rates later."
asserted
authorization → point → rates
Lawmakers would not have to get permission from the voters to make those changes, so Coloradans would be trading away their flat income tax for a new model where income taxes could be hiked by the legislature at any time.
uncertain
taxes → have → time
Second, the new rates are not indexed to inflation.
asserted
rates → index → inflation
As a result, "a household making $450,000 a year in today's dollars would be moved into a higher tax bracket within eight years if their earnings increased by 3% annually," reports The Colorado Sun, which crunched the numbers.
asserted
which → make → numbers
Such "bracket creep" would also push more workers over the $100,000 threshold, nullifying the small tax cut for workers making less than that.
asserted
creep → push → that
Politically, the progressive income tax proposal is dividing Democrats.
asserted
proposal → divide → Democrats
The Colorado Democratic Party has endorsed Amendment 87 (along with many of its usual allies, like the AFL-CIO and the state's largest teachers union).
asserted
Party → endorse → CIO
But Democratic Gov. Jared Polis has called the proposal "a huge blank check to politicians" that will "cripple our economy and reduce jobs."
asserted
that → call → jobs
In comments to a Denver TV station, Polis also highlighted how higher taxes in Colorado would make the state less competitive with its neighbors.
asserted
state → highlight → neighbors
"Utah has a very similar tax rate to what we have.
asserted
we → have → what
If ours is double, we can't compete for businesses," Polis told Denver7.
asserted
Polis → compete → Denver7
We will not be able to attract new employers to Colorado if the voters adopt this."
asserted
voters → attract → this
If the amendment passes, Colorado would have a significantly higher top income tax rate than any of its neighbors.
asserted
Colorado → pass → neighbors
Under Colorado law, Amendment 87 needs 55 percent approval to pass because it attempts to change the state constitution.
asserted
it → need → constitution
In contrast, Proposition 136—the one that would cap the income tax rate at 4.4 percent—requires just a simple majority.
asserted
that → cap → majority
It is possible, but unlikely, that both could pass.
uncertain
both → pass → ?
That would create a conflict, since the state's income tax can't be capped at 4.4 percent and also hiked to more than 7 percent on incomes over $500,000.
asserted
tax → create → 500,000
If that happens, the ballot question with the larger share of support would win, per state law.
asserted
question → happen → law
"In short, that means Amendment 87 would need to both win majority support from voters and surpass Proposition 136 in total votes to go into effect," explains the Denver Post, which has encouraged residents to vote against both ballot measures.
asserted
which → mean → measures
Accordingly, Proposition 136 must win majority support from the voters and surpass Amendment 87 (which needs 55 percent to pass, don't forget) to be implemented.
asserted
which → win → percent
It is all a bit confusing, but the outcomes are worth watching.
asserted
outcomes → watch → ?
It's now up to the voters to decide if that remains true.
asserted
that → decide → voters
The Aporia
