What the state gives the Coloradans in the form of tax relief is more than recovering costs, according to an analysis released Wednesday by the Denver-based Common Sense Institute.
Coloradans will disburse $ 255 million to cover expenses approved by the General Assembly this year.
True, the business think tank points to a 0.08% cut in state income tax approved by voters last year under Proposition 116 will help, but not enough.
“We entered the 2021 legislative session knowing there was $ 1.8 billion in new taxes and fees, and we came out with $ 2.1 billion in new net costs to individuals and businesses. statewide, ”said Chris Brown, the institute’s vice president of research and policy. .
He broke it down into a comparison: “If we were to increase our state income tax to collect an amount of revenue equal to the pending fees, it would have to increase by 1.23 percentage points or 27. % from the current 4.55% tax rate. “
Voters missed the opportunity to vote on fee increases, as they do with taxes, because fee increases for state-run businesses are exempt from the Taxpayer Bill of Rights of the constitution of the ‘State.
The legislature created six new companies this year, each of which is expected to raise less than $ 100 million in its first five years, bypassing the voter approval required by Proposition 117, which voters also adopted last November.
However, the indirect costs of the new laws and regulations will likely exceed the direct costs, the researchers said. While they cannot yet fully quantify the numbers, the total could run into billions of dollars.
“While a single new regulation may not change the outcome of a company’s decision to expand to Colorado or move to our state, at some point the cumulative regulatory burden could,” warned the Common Sense Institute in the white paper.
Read the full analysis, titled “The High Price of the 2021 Legislative Session,” by clicking here.