Lawmakers say taxpayers could see the biggest tax cut in Colorado history

COLORADO (KRDO) - State Republicans are pushing for a bill that could deliver the biggest tax cut in Colorado history, keeping $450 million in the hands of taxpayers. Meanwhile, Democrats are also focused on tax relief, pushing for a bill that would give tax credits to middle and lower income families.

However, the lawmakers are up against the clock. The 2024 legislative session ends Wednesday, so they have to get these passed into law before then.

Senate Minority Leader Paul Lundeen is sponsoring the bill to cut income tax.

"It will take the income tax rate for 2024 down to 4.25%. So, it's about a $450 million income tax cut for the people of Colorado," said Paul Lundeen. "So this is significant for a number of reasons. One, it's Taxpayer Bill of Rights refund money that's actually going back to the taxpayers."

TABOR is outlined in the state constitution, and it requires the state to return excess money collected. Lundeen says this bill essentially takes out the middle man by not collecting that excess money in the first place.

"If we reduce the income tax rate, it goes back to the taxpayers," said Lundeen. "It doesn't go to the expansion of various government programs, which should never happen with Taxpayer Bill of Rights refund money, but it has happened in the past."

Lundeen says this would not impact any government programs, because it is money above the TABOR cap and therefore not included in state budgeting.

Democratic State Senator Mike Weissman is championing another bill on tax relief.

"We want to support working families," said Weissman. "That's the point of this tax policy, but we want to do so in a way that's fiscally responsible and doesn't compete with other priorities like K-12 education."

Weissman's bill would change state tax policy in order to help lower and middle income families by partially matching federal earned income tax credits. If it passes, Weissman believes it could give families hundreds or even thousands of dollars in additional relief.

"And that matters because in the last couple of years in particular, the cost of everything has gone up," said Weissman. "Cost of food, cost of health care, cost of housing. You know, some people say, 'oh, we're all in the same boat.' I think a better way to put it is we're all in the same storm, but different people are in different boats."

These bills are not mutually exclusive. They can both be passed into law as long as it'd done by May 8th.