A two-tiered tax increase could be on the way for Colorado residents if voters pass a proposal this fall that would raise $950 million to support public schools across the state.
The measure—called Initiative 22—would increase income tax rates for those making less than $75,000 annually from 4.63 percent to 5 percent. Those Coloradans who earn more than $75,000 would see their tax rates climb to 5.9 percent.
In real money, a person who earns 100,000 a year would pay an extra $595 in taxes annually if the initiative passes. The ballot issue would help restore money to government programs that have had budgets cut in the past several years: Money from the tax increase would go toward reducing classroom sizes, increasing access to kindergarten, and improving special education programs.
While the proposal will be put on the November ballot, it seems to have an uphill climb toward passage. A polling company reported earlier this year that a majority of Colorado voters wouldn’t support a tax hike to restore the government programs that had lost funding.
—Image courtesy of Shutterstock