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![handle is hein.taxfoundation/taxfaapa0001 and id is 1 raw text is: TAXM:7n7
FOUNDATION
October 17, 2013
No. 397
Colorado Amendment 66: A $1 Billion Tax Increase
on Small Businesses and Individual Taxpayers
By
Elizabeth Maim
Introduction
On November 5, 2013, Colorado voters will face a ballot measure that increases state individual income
taxes by $950 million in its first year.' The state individual income tax would become a two-bracket system,
rather than a single rate applied to all incomes (see Table 1).
Table I: Changes to Colorado Individual Income Tax
Structure under Amendment 66
Current System Under Amendment 66
Single 4.63 percent on all income 5.0 percent on income less than $75,000
5.9 percent on income above $75,000
Source: Colorado Revised Statutes, Colorado Secretary of State
This large tax increase will have negative effects on the economy of Colorado. In particular, this will increase
taxes on small businesses filing through the individual income tax code and low- and middle-income
taxpayers.
Colorado's Economic Position
Colorado's economy is strong when compared with the rest of the country, but much of this strength is due
to the robust economy of the Denver metropolitan region.2 This area comprises the largest part of the state
economy (nearly two-thirds of output and half of employment).' The economy in other areas of the state has
been more variable, however. Some regions-like the Northern region, Southwest Mountain region, and the
Mountain region-have seen a strong and stable economic recovery, as reflected by increased employment, a
1 Colorado Secretary of State, Results for Proposed Initiative #22, Ballot Title Setting Board (2013-2014),
htt-o://w-,,w.sos.state ~co~us/pubs/elections/Jnitiativ es/titl eBoard/results/20 13-20 14/22Rsuts~htm1.
2 Mark Vitner & Sara Silverman, Colorado Economic Outlook, WELLS FARGO EcONOMICs GROUP SPECIAL COMMENTARY (Aug.
7, 2013), at 1, htfs:Iiw'w e1sfargocom/downoads/pdf/com/insi~hts/economics/regional-rcpors/Colorado 08
[hereinafter Colorado Economic Outlook].
Colorado Economic Outlook, supra note 2, at 2.](ViewImageLocal?handle=hein.taxfoundation/taxfaapa0001&div=1&collection=&method=preview&ext=.png&size=3)