Colorado Income Tax Initiative Proposed for November Ballot
What happened
State Representative Lorena Garcia helped sign a petition in Aurora, Colorado, supporting a graduated income tax initiative for the November 2026 ballot. This measure, Amendment 87, proposes reducing income tax rates for individuals and businesses earning less than about $500,000 while raising rates for higher earners.
Why it matters
The initiative aims to generate an estimated $2 billion in its first year to fund education, childcare, and healthcare. However, major Colorado business groups campaign against the measure, arguing that increased taxes cause businesses to leave the state. Reports indicate that while some wealthy individuals may leave to avoid higher taxes, most millionaires remain in the state.
Who's involved
- Lorena GarciaColorado State Representative supporting the graduated income tax initiative.
- Colorado Office of Economic Development and International TradeState agency whose economic competitiveness is tied to the tax debate.
- Colorado Department of EducationState department that would receive funding from the proposed tax initiative.
Who could feel it
Possible knock-on effectsThese are possibilities Brind reasoned out, not predictions, and not advice. Most are not stated in any report.
- ExxonMobilSpeculative
Might face changes to corporate costs and regulatory standing due to state income tax changes.
- Philip Morris InternationalSpeculative
Could see changes in corporate costs and profitability related to its manufacturing campus in Aurora.
- Colorado Department of EducationSpeculative
Could gain funding access if the tax initiative is approved.