|
“Big Tax-and-Spend Stakes in Colorado.” That was the Wall Street Journal editorial board on Tuesday. The subhead: “A pair of ballot measures would begin to turn the state into California.”
All quotes in this newsletter are from this editorial.
“Once states embark on this tax-and-spending ratchet, and especially without the limit of a flat tax, they don’t stop.”
Colorado has two brakes on endless tax increases and out-of-control spending. The flat tax is one. Colorado’s 1992 Taxpayer Bill of Rights (aka TABOR) is the other. “Tabor limits annual spending growth to the rate of population growth plus inflation. Revenue that exceeds the limit must be returned to taxpayers.”
“This spending brake, along with the law’s requirement for voter approval to raise taxes, has been a crucial check on Democrats who run the state government. Colorado’s 4.4% flat income tax is lower than the rate in most of its neighbors, including Utah (4.45%), Oklahoma (4.5%), Nebraska (4.55%) and New Mexico (5.9%). This has made it a more attractive place to live, work and grow a business.”
Then the Journal warns: “Maybe not for long.”
If Amendment 87 and Proposition NN pass, politicians would be “allowed to pocket and squander even more revenue.”
“Don’t expect this new revenue to satisfy progressives … It won’t be long before they seek to hit taxpayers for more money, as they have in California, New York and New Jersey.” Everyone’s taxes will eventually rise if Amendment 87 passes.
“Coloradans could protect themselves from this raid if they pass Proposition 136, another ballot measure this year that would enshrine in law a 4.4% cap on individual and corporate income tax rates. If a majority of voters back both Prop 136 and Amendment 87, whichever gets more votes will be the law of the land.”
“Let’s hope Colorado voters realize the benefits of their long-time checks on the insatiable appetites of … their politically kept men and women.”
For four more days, that is still up to us.
| 