SUPPORT EARNED INCOME and CHILD TAX CREDITS!
The League supports policies and programs at all levels of the community and government that promote the well-being of children; and supports a tax system that is progressive, taking a larger share of income from the richest and the smallest share from those with lowest incomes
HB21-1311 - Income Tax
Sponsors: Sens. Hansen & Moreno and Reps. Sirota & Weissman
This bill doubles the state’s Earned Income Tax Credit, to 20% of the federal credit and fully funds Colorado’s Child Tax Credit – a large boon to lower income Coloradans, especially families with children.
It funds these tax expenditures by closing tax breaks used by top earners and by insurance companies and making the state’s corporate income tax more like other states.
The League is generally skeptical of most tax credits. However, the earned income and child tax credits are rather unique. Because Colorado’s income tax rate is a flat rate for all, and our sales tax takes the largest share of income from those with the smallest earnings, our overall state tax system is, instead, regressive, hitting hardest those least able to pay. HB21-1311, by increasing tax credits for those with the lowest incomes, especially those families with children, and cutting or reducing tax expenditures for the richest, helps make Colorado’s tax system more progressive.
HB 1311 will likely have a second reading in the House this week. Please contact your Colorado House Representative to urge them to vote YES on the bill in second reading. Find your legislators here.