STOLEN DOLLARS: Colorado’s Attack On TABOR
The Taxpayer Bill of Rights (TABOR) is an essential component of our State Constitution that was designed to keep government growth in check. Since Colorado voters approved TABOR in 1992, it has served as the gold standard for limiting government growth, taxation, and spending. It is designed to ensure that government’s growth and tax revenue cannot exceed the rate of population growth and inflation.
However, Government spending has outpaced inflation and population growth in recent years. For each Coloradan, spending has gone up 31%, from FY06 to FY26, growing from $5,580 to $7,308. Have your roads, schools, hospitals, and public safety gotten 31% better?
Families and businesses must maintain their budgets within their means and TABOR is designed to require the government to do the same. This is simple basic financial common sense, yet our State is not acting within those boundaries. In fact, several bills introduced in recent weeks are actively challenging and bypassing the whole intent of TABOR. HB26-1221, 1222, 1223, 1289 and several other pieces of legislation are deliberately doing an end run around TABOR. In addition, the tax increases are hammering small businesses and families with increased costs.
According to the Colorado Chamber’s analysis of each bills’ fiscal impact, the combined proposals represent $624.2 million per year in new taxes on Colorado businesses. For context, Colorado collected roughly $1.06 billion in corporate tax revenue from businesses last year, meaning these proposals amount to a more than 58% increase in taxes on business beginning next year. (Read more from their analysis here)
Between fiscal years 1997 and 2007 alone, Colorado taxpayers received $6.7 billion in TABOR-provided tax relief. Now they are receiving nothing. During that period, the state experienced one of the fastest growing and most competitive economies in the nation. TABOR is designed to protect citizens from excessive government spending. However, for the past 8 years under the yolk of single party rule, the Majority party has constantly attacked TABOR. The result are clear, taxpayers are not receiving their refunds, businesses are being squeezed for every dime, and government growth is out of control.