How could the potential tax hike in Colorado affect Greg Abbott?
Colorado tax hike may drive businesses toward Texas The proposed Amendment 87 in Colorado, which represents a $2.7 billion annual tax hike, is cited as a factor that could drive businesses away from the state. These businesses may relocate to states like Texas, which currently has no income tax. As Governor of Texas, Greg Abbott oversees the state's economy, and the influx of businesses relocating from Colorado would change the state's economic composition and tax base.
- Effect
- Mixed
- How direct
- Brind's reasoning
- When
- Within months
- The story
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How it reaches Greg Abbott
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Amendment 87, a proposed tax hike in Colorado, is scheduled for a November 3 mail ballot. Colorado Governor Jared Polis has strongly opposed the measure, calling it a "$2.7 billion tax hike" and "bad policy that would destroy our economy". He stated that the measure would make Colorado "less competitive".
The full event1independent outlet -
As Governor of Texas, Greg Abbott is responsible for the state's economic health and attracting businesses, and the relocation of businesses from Colorado would directly affect the state's economic composition.
No report states this step directly. Brind drew it from the reporting on each side of it, so treat it as an informed guess.
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Governor of Texas since 2015
Everything about Greg Abbott
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The facts so far
As reported. Each one links to where it comes from.
- Amendment 87 is a $2.7 billion tax hike.gazette.com
- Amendment 87 would replace Colorado’s simple flat tax with tax brackets ranging from 3.7% to 8.4%.gazette.com
- The measure stands to chase off businesses to states with more reasonable tax codes, including Texas and Florida.gazette.com
Why it matters
The potential migration of businesses represents a shift in the economic geography of the United States. For Texas, which already boasts states like Nevada and Wyoming having no income tax, attracting businesses from states with higher tax burdens could strengthen its tax base and economic growth.
Colorado's current tax structure, which includes a flat income tax of 4.4%, is being challenged by the proposed Amendment 87. The debate centers on whether the measure is a necessary progressive tax or a policy that would destroy the state's economy by making it less competitive.
What we don't know yet
- How many businesses are likely to relocate from Colorado to Texas if Amendment 87 passes?
- What specific economic sectors in Texas would benefit most from this business migration?
What would change this answer
— Other considerations
Beyond this explainer
Questions worth asking
Ideas the web ties closely to this story that the explainer doesn't mention. These are prompts for your own research: Brind hasn't answered them.
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About Colorado State Act
How does the Colorado State Act relate to the current flat income tax structure that Amendment 87 seeks to replace?
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Who else could feel it
Other possible ripples from the same event.
- James UthmeierPossibleIncreased business migration may raise regulatory demands for Florida AG
- Colorado Department of Public Health and EnvironmentPossibleThe Colorado Department of Public Health and Environment may face reduced funding if businesses relocate due to the proposed tax hike.
- Denver CountyPossibleDenver County's tax base could shrink if businesses leave Colorado
Reporting
- gazette.comSunday
Keep going
Brind's analysis is written by AI from the reporting linked above and can be wrong. This explainer is a possibility worth considering, not a forecast: steps marked as Brind's reasoning are not stated in the reporting. It is not investment advice; do your own research.