Colorado voters embrace tax-the-rich Amendment 87, campaign says
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Coloradans have voted to tax the rich. That's according to supporters of Amendment 87, who declared victory Thursday.
Why it matters: Approval would mark a sweeping overhaul of Colorado's income tax system, raising billions from the state's highest earners and delivering a victory for progressives amid a Democratic wave reshaping the state's political landscape.
The big picture: Amendment 87 would dismantle Colorado's decades-old flat income tax system and raise taxes on households and businesses earning more than $500,000 while offering modest cuts for most taxpayers.
- Colorado is among just 14 states with a flat tax.
By the numbers: The measure had garnered 50.6% in support as of 1pm Thursday, with about 90% of votes counted, according to preliminary results from the Colorado Secretary of State's Office and the Associated Press.
The intrigue: Amendment 87 divided some of Colorado's most influential Democrats.
- Progressive lawmakers and advocacy groups championed the measure as a way to make Colorado's tax system more equitable.
- Gov. Jared Polis, Gov.-elect Phil Weiser and former U.S. Sen. Ken Salazar opposed the measure, citing concerns about its economic consequences.
Yes, but: Weiser pledged to implement the overhaul if approved, putting him in charge of carrying out a policy he opposed.
How it works: Amendment 87 would replace Colorado's flat 4.4% income tax with six brackets ranging from 3.7% to 8.4%.
- The changes are projected to generate roughly $2 billion in additional annual revenue for K-12 education, healthcare and early childhood programs.
- Coupled with voter approval of Proposition NN, it could significantly ease pressure on Colorado's strained state budget and give lawmakers more to spend.
The other side: Business groups and conservative advocates argued the measure would undermine Colorado's economic competitiveness, discourage investment and prompt companies to leave the state.
What's next: If the results hold, the new tax structure is expected to take effect Jan. 1, leaving lawmakers to determine how the additional revenue is distributed.
What we're watching: Amendment 87 supporters also declared victory over Proposition 136, a competing measure that sought to cap state income tax rates at 4.4%.
- That measure was failing with 52.4% opposed as of 1pm Thursday, but the race had not been called.