Your Money, Higher Taxes, For What?

Tuesday, November 1st will be a red letter day for Colorado and voters in our state. Proposition 103 is the a potential increase in taxes for anyone pays state income tax or buys something in our state. The money would only be used for public pre-schools, K-12, State Colleges and Universities. It’s expected to raise 2.9 billion dollars over the life of the plan. You are voting to raise state and income tax from 2012 to 2016.

If Prop 103 passes, here’s how much it’ll cost you. Currently the state income tax rate is at 4.63. If 103 is approved by you, that rate would go up to 5.0. Let’s break it down in simple numbers. You currently pay $46.30 for each $1000 of taxable income. Prop 103 would change that for you. You would pay $50 for each $1000 of taxable income.

The state sales tax rate is currently at 2.9. If Prop 103 passes, it would jump to 3.0. Here’s how it could affect your bottom line. If you buy something for 50 bucks, Prop 103 would increase the state sales tax on your purchase by five cents.

I asked Tim Cross with the Colorado Springs Education Association why someone in a sour economy would want to okay higher taxes. He told me can you afford not to invest in the futures of Colorado children especially now in a shrinking job market.

Prop 103 critics question if more money equates to better education. They also wonder that when the tax hikes end in 2016, will there be more education cuts because you won’t have that money anymore from Prop 103. It ends in 2016..