P R O P O S I T I O N 116 : I N CO M E TA X R E D U C T I O N

Proposition 116 asks voters to approve a reduction in Colorado’s income tax rate from 4.63% to 4.55%, a rate that has remained flat since 2000. Unlike a measure that would have increased taxes for Colorado’s wealthy and decreased them for everyone else, the campaign raised enough support to collect enough signatures to get it on the ballot in November.

Proponents hope that higher turnout and Colorado voters’ history of voting down tax increases will play in their favor.

The case for: All Coloradans would pay less in state income taxes, which proponents say is especially important after President Donald Trump’s federal tax cuts led to an increase in state taxes. During the COVID- 19 pandemic, more Coloradans could use the tax break. The tax cut is also expected to attract more employers to the state, bringing in more revenue.

The case against: Only the wealthiest Coloradans would see a significant reduction in their taxes, with 75% of Coloradans seeing a tax cut of less than $ 50 per year, according to the Blue Book, the state ballot information booklet. The lost state revenue will affect state funding, including for public education, and could harm low- income households that rely on government programs.